Comments on: Event risk in the Baltics is critically high http://www.creditwritedowns.com/2009/05/event-risk-in-the-baltics-is-critically-high.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/05/event-risk-in-the-baltics-is-critically-high.html#comment-56502 Edward Harrison Mon, 01 Jun 2009 19:00:00 +0000 http://www.creditwritedowns.com/2009/05/event-risk-in-the-baltics-is-critically-high.html#comment-56502 Thanks for your insights, Swedish Lex. That gives some good colour to how this will play out politically. I see the Swiss Franc trade is bringing back the CEE issue as well. The stress from the Baltics and the CEE is going to be something to watch which could derail recovery. Thanks for your insights, Swedish Lex. That gives some good colour to how this will play out politically. I see the Swiss Franc trade is bringing back the CEE issue as well. The stress from the Baltics and the CEE is going to be something to watch which could derail recovery.

]]> By: Swedish Lex http://www.creditwritedowns.com/2009/05/event-risk-in-the-baltics-is-critically-high.html#comment-56475 Swedish Lex Thu, 28 May 2009 16:05:00 +0000 http://www.creditwritedowns.com/2009/05/event-risk-in-the-baltics-is-critically-high.html#comment-56475 Indeed. The Swedish Government is calculating with (further) major banking losses coming from the Baltics and has consistently been building up a war chest to deal with it. The Government has also consistently kept the banks on a very short leash with the result that the Minister of Finance (formerly employed by one of the major banks) is hugely unpopular with the banks. The latter however know that they may soon have to return to sugar daddy for more and therefore remain polite. These developments will likely occur while Sweden holds the EU Presidency during the second half of this year. Expect a lot of drama in the coming months. Indeed.

The Swedish Government is calculating with (further) major banking losses coming from the Baltics and has consistently been building up a war chest to deal with it.

The Government has also consistently kept the banks on a very short leash with the result that the Minister of Finance (formerly employed by one of the major banks) is hugely unpopular with the banks. The latter however know that they may soon have to return to sugar daddy for more and therefore remain polite.

These developments will likely occur while Sweden holds the EU Presidency during the second half of this year. Expect a lot of drama in the coming months.

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