En ik kan het niet laten:
Save banking, not the bankers or the banks; the case of ING
| Quote: | | I am sure the stock market loved this deal. And I am sure the politicians and civil servants that put it together loved this deal. Politicians and their advisers love off-balance-sheet and off-budget financing. Guarantees are great from this perspective. Because they represent a contingent liability, they are off-balance sheet. Only if and when the guarantee is called, will the payments under the guarantee show up in the budget. The tax payer, however, should hate it. And so should all those concerned about moral hazard: the effect on future incentives for excessive risk taking by ING and other Dutch banks. It is also unfair: it bails out the shareholders and unsecured creditors of the bank, who made lousy investment decisions and should pay for that. Except for the departure of the CEO (which was appropriate, and indeed overdue), the rest of the executive and supervisory boards are still in place. |
en
| Quote: | | But there is at least a material risk that the fiscal spare capacity of the Dutch authorities would be insufficient to fill the solvency gap in the balance sheets of the Dutch banking and insurance sectors. |
|
Geplaatst: vr 30 jan 2009 16:00