| Author (Person) | Harding, Robin |
|---|---|
| Series Title | Financial Times |
| Series Details | 27.8.11 |
| Publication Date | 27/08/2011 |
| Content Type | News |
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Report of a speech by Christine Lagarde, Managing Director of the International Monetary Fund at the (US) Federal Reserve’s annual gathering of central bankers in Jackson Hole, Wyoming on the 27 August 2011. She said that European banks might need forced capital injections to stop the spread of the eurozone’s sovereign and financial crisis, in one of the starkest warnings from a senior policymaker about the danger of a new global slowdown. European officials rounded on Christine Lagarde following the speech, accusing her of making a 'confused' and 'misguided' attack on the health of Europe’s banks. Jean-Claude Trichet, President of the European Central Bank, and Olli Rehn, the European Commission’s economic chief – went before the European Parliament on the 29 August 2011 to insist that neither bank liquidity nor capitalisation were a danger. Separately, the European Banking Authority, a supervisory body for banks in the European Union, called for the €440bn European Financial Stability Facility (EFSF) to provide direct capital injections to ailing banks. The apparent rift between the EU and IMF in the assessement of the risk to banks and the measures needed to contain them could heighten market concerns about how the debt crisis is being handled. |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
