Interesting news this week as Belgium-based Optima Bank has been shut down by both the National Bank of Belgium (which also acts as the Belgian regulating body) as well as the ECB. According to the national supervisor, the bank would have been unable to meet its commitments to its clients and was forced to cease all banking activities after some potentially fraudulent transaction were unveiled.
It’s surprising to see the main media have tried to keep this silent as even the website of the National Bank of Belgium didn’t bother to issue the press release in English (whereas all other press releases on the home page can be read in English). There’s no statement from the ECB either, nor has this news been translated on the English version of website of the state-owned national television station. Continue reading
The European Union must be able to wind down failing banks within a weekend, according to Sabine Lautenschlaeger, Germany’s candidate for a vacant seat on the European Central Bank’s governing council.
“So we need a structure where it is possible to start a resolution on Friday night and to finish it on Monday morning at 1 o’clock because then Japan, Tokyo opens. That is a really important requirement,” Lautenschlaeger told a European parliament committee in Strasbourg. Continue reading