Comments on: The Roskilde Bank problem http://www.creditwritedowns.com/2008/08/roskilde-bank-problem.html Finance, Economics and Markets Thu, 09 Feb 2012 21:54:06 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2008/08/roskilde-bank-problem.html#comment-200 Edward Harrison Tue, 26 Aug 2008 17:08:00 +0000 http://www.creditwritedowns.com/2008/08/the-roskilde-bank-problem.html#comment-200 You are 100% spot on. The regulators were sleep at the wheel all over Europe and North America. At least the UK controls fiscal AND monetary policy so it can coordinate a response. Europe can't say the same.<br/><br/>Personally, I look at Roskilde as big news, a veritable canary in the mine shaft event. Especially after the Dutch National Bank head Wellink said thew ECB was going to cut off the liquidity tap, I expect some Spanish banks to fail.<br/><br/>Will there be more bailouts. Yes. Will the taxpayer be on the hook like with N. Rock. Yes. Could this have been prevented by tighter regulation. Somewhat, yes. You are 100% spot on. The regulators were sleep at the wheel all over Europe and North America. At least the UK controls fiscal AND monetary policy so it can coordinate a response. Europe can’t say the same.

Personally, I look at Roskilde as big news, a veritable canary in the mine shaft event. Especially after the Dutch National Bank head Wellink said thew ECB was going to cut off the liquidity tap, I expect some Spanish banks to fail.

Will there be more bailouts. Yes. Will the taxpayer be on the hook like with N. Rock. Yes. Could this have been prevented by tighter regulation. Somewhat, yes.

]]> By: Mark Wadsworth http://www.creditwritedowns.com/2008/08/roskilde-bank-problem.html#comment-198 Mark Wadsworth Tue, 26 Aug 2008 12:19:00 +0000 http://www.creditwritedowns.com/2008/08/the-roskilde-bank-problem.html#comment-198 Danish banking supervisors are just as guilty as the FSA in the UK. <br/><br/>N Rock's gross lending doubled in 3 years (2004 to 2007) and FSA did not bat an eyelid. Per today's FT, Roskilde's lending went up by 37% in a single year. Danish banking supervisors are just as guilty as the FSA in the UK.

N Rock’s gross lending doubled in 3 years (2004 to 2007) and FSA did not bat an eyelid. Per today’s FT, Roskilde’s lending went up by 37% in a single year.

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