Tag Archives: Europe’s Banks

Quote of the Day: Brussels, We Have a Problem

According to current banking regulations, sovereign credits are considered “risk-free.”   This means that banks can take on as much sovereign credit risk as they like without setting aside any capital.  Under such a structure, selling short CDS protection is akin … Continue reading

Posted in PIIGS, Policy, Quote of the Day, Sovereign Debt, Sovereign Risk | Tagged , , | Leave a comment