Storyline
After months of repeated alarms of another crisis affecting the European financial sector, EU Ministers of Finance indicated yesterday (4 October 2011) in Luxembourg that a new bank rescue plan was on the way through a national coordinated recapitalisation. A rescue plan based on simply coordinating national measures will not work because it leaves distrust among banks which do not know what measures have been taken in other Member States.
ALDE leader Guy Verhofstadt says: "Because only with a European rescue plan we can stabilise again the banking sector and we can end the crisis in the banking sector and that's a lesson we have to learn from 2008 and the collapse of Lehman Brothers because at that moment we have taken national rescue measures and it didn't solve the problem, we are still faced with a banking crisis in Europe. So the best way to deal with it is to have a European rescue plan because then every bank knows that the same measures have been applied to them as to the others. You can create confidence by taking one European rescue plan, by implementing one single European rescue plan better than taking 17 or 27 different measures and rescue plan ."
A recapitalisation of banks is vital to prevent any possible chain reaction triggered by the ongoing Greek crisis. But if limited only to a coordination of national plans it risks being a repeat of the short-lived bank rescues which followed the Lehman collapse in 2008 and which did not lead to restoring confidence in the market and amongst the banks themselves. What we need now is a common and transparent European recapitalisation plan for banks that guarantees a level playing for everyone," he concluded.
Press Release
PRESS RELEASE
Verhofstadt: Lessons still not learned from post Lehman bank crisis
After months of repeated alarms of another crisis affecting the European financial sector, EU Ministers of Finance indicated yesterday in Luxembourg that a new bank rescue plan was on the way through a national coordinated recapitalisation.
05/10/2011
After months of repeated alarms of another crisis affecting the European financial sector, EU Ministers of Finance indicated yesterday in Luxembourg that a new bank rescue plan was on the way through a national coordinated recapitalisation.
Guy Verhofstadt, ALDE group leader in the European Parliament said: "It seems that Member States just don't want to learn the lessons of the past. A rescue plan based on simply coordinating national measures will not work because it leaves distrust among banks which do not know what measures have been taken in other Member States."
According to Verhofstadt: "A recapitalisation of banks is vital to prevent any possible chain reaction triggered by the ongoing Greek crisis. But if limited only to a coordination of national plans it risks being a repeat of the short-lived bank rescues which followed the Lehman collapse in 2008 and which did not lead to restoring confidence in the market and amongst the banks themselves."
"What we need now is a common and transparent European recapitalisation plan for banks that guarantees a level playing field for everyone," he concluded.
Shotlist
Euro coins factory stock footage, soundbite Guy Verhofstadt:
"Because only with a European rescue plan we can stabilise again the banking sector and we can end the crisis in the banking sector and that's a lesson we have to learn from 2008 and the collapse of Lehman Brothers because at that moment we have taken national rescue measures and it didn't solve the problem, we are still faced with a banking crisis in Europe. So the best way to deal with it is to have a European rescue plan because then every bank knows that the same measures have been applied to them as to the others. "
Med shot, hands of Verhofstadt holding papers, soundbite Guy Verhofstadt:
"You can create confidence by taking one European rescue plan, by implementing one single European rescue plan better than taking 17 or 27 different measures and rescue plan ."
Wide shot Guy Verhofstadt heading to the exit of his office, euro bancnotes factory stock footage, bank desk stock footage, ECB president at a EU summit.
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Inadequate recapitalisation of European banks could repeat mistakes of Lehman
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