Wednesday, October 12, 2011

Professor Kerber calls for withdrawal by Greece from the Euro on Sky News.

In what I believe is one of the first broadcast appearances by Professor Kerber on 'popular' British broadcast media, he called for Greece to withdraw from the Euro and exposed the crass economic ignorance of EU Commission President Barosso, especially during his time as Prime Minister of Portugal.

There are many other links regarding the admirable Professor Kerber on this blog.

Update 0520 GMT 13/10/11 - The Sky News transcipt from the interview is here, from which I quote:

Mr Barroso named five key steps he wanted to see implemented, including banning banks from paying bonuses and dividends if they do not reach new cash reserve levels.
To assess banks' capital needs, their exposure to all sovereign debt should be taken into account "in a transparent way," Mr Barroso added.
However Professor Markus Kerber, a public finance expert from Berlin University, said the levels of cash held by banks is the responsibility of the shareholders.
Speaking on Jeff Randall Live, he said: "There will be case to case recapitalisation in case of risk exposure that is dangerous."
But he added: "It is the shareholders' task to raise new capital, even at times when the stock exchange doesn't offer capital at interesting prices."
Professor Kerber, who led an unsuccessful legal challenge to the eurozone bailouts in the German constitutional court, stressed that only after this fails should banks turn Governments and the EU for support.
"Mr Barroso has not a foggy notion of the quality of French, German or other banks," he said.



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