Monthly Archives: May 2010

Finally: the European Bazooka!

By Andrew Busch | Published: May 10, 2010

27 European nations and the IMF agreed to a mammoth E750 billion plan to stabilize the financial markets. 16 Euro area governments were joined by 11 European Union governments in meetings over the weekend to create the plan and commit to E440 billion. The European Union budget is going to contribute E60 billion. The IMF is going to contribute E250 billion. The UK abstained from contributing to the plan.

The European Central Bank is participating by agreeing to provide Euro liquidity and US dollar liquidity. Here are the four measures they’ve agreed to do to address the tensions in the … …READ MORE

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Germany Passes Greek Bailout

By Andrew Busch | Published: May 7, 2010

In a vote along party lines, the German parliament approved the E22.4 billion Greek aid bill as part of the joint EU-IMF rescue of Greece. According to Germany’s DPA, Chancellor Angela Merkel‘s centre-right coalition, with the support of the Green party, carried the vote, which passed with 390 votes in favor, 72 against and 139 abstentions from the opposition party of Social Democrats. Clearly, the opposition is making a play for the state vote in North Rhine Westphalia on Sunday and tapping into German voter’s anger over paying for Greek fiscal misdeeds.

Also, German banks and insurers have pledged to … …READ MORE

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Friday German Parliament Vote Primer

By Andrew Busch | Published: May 6, 2010

The German parliament’s budget committee approved a draft law on Wednesday on Germany’s contribution to the Greek financial package. The vote was along party lines with PM Merkel’s coalition parties of Christian Democrats, their Bavarian Christian Social Union affiliates and the Free Democrats all backing the plan. The German parliament is now on schedule to vote on the draft on Friday.

The Bundestag or lower house is the key entity voting. The upper house or Bundesrag will rubber stamp it. So far, the coalition is holding together and will likely pass the Greek debt package on Friday. The opposition party … …READ MORE

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CNBC Tonight

By Andrew Busch | Published: May 5, 2010

Tonight at 7PM ET, I’ll be on CNBC’s Kudlow Report discussing European debt crisis and whether the ECB will ease credit conditions.… …READ MORE

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German Vote=TARP Vote Part 2

By Andrew Busch | Published: May 5, 2010

Here are the latest comments by European financial officials:

01:36 05May10 RTRS-GERMANY’S MERKEL SAYS GREEK AID PLAN IS ABOUT THE FUTURE OF EUROPE AND GERMANY IN EUROPE
01:37 05May10 RTRS-GERMANY’S MERKEL SAYS WITHOUT US THERE CAN BE NO DECISION WHICH IS ECONOMICALLY SUSTAINABLE
01:49 05May10 RTRS-GERMANY’S MERKEL SAYS AID MUST COME TO AVOID RISK OF CONTAGION
03:17 05May10 RTRS-ECB’S WEBER – GREEK DEFAULT WOULD BE SUBSTANTIAL RISK FOR THE STABILTY OF EURO ZONE, FINANCIAL SYSTEM
03:17 05May10 RTRS-ECB’S WEBER – SEE THREAT OF SERIOUS CONTAGION EFFECTS FOR OTHER EURO ZONE STATES
06:20 05May10 RTRS-GERMAN FIN MKT WATCHDOG BAFIN CHIEF SAYS … …READ MORE

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Let the Votes Begin!

By Andrew Busch | Published: May 4, 2010

It’s the Wild West for the Senate as they begin debate on the financial regulatory reform bill. Banks to auto dealers to dentists (yes, dentists!) will all be potentially impacted by what amendments are offered and what are agreed upon. While tougher regulations on consumer protections and derivatives are the highlights, it will be the lesser known aspects that will make or break many businesses. “This legislation deals with just about any issue you could think of,” said Steve Verdier, a senior vice president and director of congressional relations at Independent Community Bankers of America according to CQ.

So far, … …READ MORE

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Top Ten Points on Greece

By Andrew Busch | Published: May 3, 2010

E110 billion over three years.
E80 billion from European Union members.
E30 billion from IMF and they will vote this week to approve
E30 billion more of austerity cuts from Greece.
2014 is when Greece must meet 3% deficit to GDP
ECB to continue to accept Greek debt to repo
Germany must vote to approve deal this week.
Greek unions to strike on Wednesday
Questions arise over who’s next: Portugal, Spain, Italy, Ireland
The loans to Greece will be at 5%.

A bit of perspective, this is the largest country bailout ever attempted and is twice as large as the … …READ MORE

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