recent news show that investors are unhappy about the coming European Banking Union not helping the troubling states save their failing banks. But were investors asking too much from the European Banking Union? I don't see any reason why the European Banking should Union help the troubling states save their failing banks. Why should German or French pay for the mistake for Spanish/Italian banks since the coming European Banking Union did not receive any money from any bank?
If the European Banking Union is to be like the FDIC in US, at least, they should pay insurance premium first before getting any money from the European Banking Union. ECB has done a great deal already by giving unlimited long term liquidity support for European banks similarly what FED had done during 2008 financial crisis.
Sure, if the European Banking Union helps save the failing banks, it will help the troubling states a lot. But that's not the way and unlikely it will happen.
So get realistic, investors.
If the European Banking Union is to be like the FDIC in US, at least, they should pay insurance premium first before getting any money from the European Banking Union. ECB has done a great deal already by giving unlimited long term liquidity support for European banks similarly what FED had done during 2008 financial crisis.
Sure, if the European Banking Union helps save the failing banks, it will help the troubling states a lot. But that's not the way and unlikely it will happen.
So get realistic, investors.