In this new covenant lord and taylor has been, as is a clear winner going on lately. Germany has en

Finally, the Ecofin Council (Economic lord and taylor and Financial Affairs of the European Union) has agreed to create the fund to liquidate lord and taylor banks at European lord and taylor level, that is, to ensure depositors' money that Unique Mechanism Resolution lord and taylor (MUR) is called (or its acronym SRM, Single Resolution Mechanism).
In this new covenant lord and taylor has been, as is a clear winner going on lately. Germany has ensured that the European Commission does not have the last word, so preventing it from settling German banks, in addition to ensuring that you will not rescue foreign banks with taxpayers' money during the next 10 years unless there is a new agreements to advance European integration. European banks will be adding in this fund 5,500 million a year, reaching 55,000 million euros in 2026. This is a ridiculous figure, compared to the figures from the banking sector. The fund will be compartmentalized by countries to date, which means that if a Spanish bank fails before 2026, money that will be used will be the part that Spanish banks have put in the background. If this were the case, it is obvious that there would be enough money, since the contribution of Spanish banks will be 8,500 billion over the next ten years. The Spaniards have money in deposits of up to 100,000 euros protected amounted to 31 December 2012 to EUR 795.000 million (Source: Report of the Deposit lord and taylor Guarantee Fund). Do the math. If a medium-sized bank bankrupt 8,500 million lord and taylor serve neither to start. We can get an idea of how the liquidity needs of the State Spanish banking system exceeds by several orders of magnitude to 8.500 million from the MUR, the report prepared by the PACD: "The illegitimacy of Bailouts to Banks in Spanish lord and taylor State ". We also note that the new directive states that "Member States should ensure that deposits resulting from real estate transactions involving residential or private events linked to private life as marriage, divorce, retirement, termination of contracts, layoffs are fully protected disability or death during the twelve months lord and taylor after they have been entered in the accounts of customers. " This extends the amount of protected in the Spanish state and the rest also deposits. In short, protection is extended without the means to provide such protection. In addition, lord and taylor the agreement includes the bail-in formula, or internal rescue exercise and applied by Troika bailout in Cyprus. Is that depositors with more than 100,000 suffer some losses on liquidation. This model was sold rescue from the European lord and taylor Commission as "unique for a number lord and taylor of reasons," although shortly after this format already recognized as a model for future banking crises, despite the thrifty middle class, and now we see how it is integrated at MUR. In the event that there is not enough money background money can access the ESM (European Stability Mechanism), which is taxpayer money. If this were not enough fund in the debt markets, that is, he may borrow, with the guarantee of the state. The fund, thus functions similarly to the bad bank SAREB (Asset Management Company of the Bank Restructuring lord and taylor Coming). The bad bank banking assets assumed at an overvalued price, assuming losses by state, reflected in additional public debt. In this case the guarantee fund will give the money directly to the bank to return the money to depositors also in charge of the public debt. With this reading, we can say that the new settlement fund is MUR us more than a bad bank raised at European level. The quantities on which the fund is provided only serve to cover up what is a public lord and taylor guarantee mechanism to the bench. In short, lord and taylor the European directive recognizes the impossibility of private banks without the existence of a public safety network (either individual state or state multilateral) that allows their existence and to be financed with the savings of citizens at a reduced cost. Nobody would leave interest rates ridiculously low deposits in private not public protection. That guarantee has a very low cost to banks (0.8% of insured deposits) therefore constitutes direct and net transfer of resources from the public to the private sphere of financial institutions. It is not an endorsement "at market prices". It is interesting to impact lord and taylor on the argument that sustains the bail-in. This system seeks to justify that depositors are partly lord and taylor to blame for the bad practices of the bank where they have the money, because lord and taylor they have not performed a monitoring task. Neoclassical economic theory