Weekend Economists American Bad Boys Part 1 July 12-13, 2014

[antigop]

6. Why Are TBTF Banks So Happy With The European Banking Union?

http://www.nakedcapitalism.com/2014/07/don-quijones-tbtf-banks-happy-european-banking-union.html

On Tuesday, November 4th of this year, supervision of the Eurozone’s 130 biggest banks, representing 80% of total financial assets, will be passed from national authorities into the welcoming hands of the ECB. From that day on, European banking union will be a reality.

The banks love the idea, as do apparently most Eurocrats, Members of the European Parliament, and national leaders. Even Angela Merkel and her government have finally come on board, in exchange for guarantees of “quality surveillance, tighter coordination of economic policies, and more binding agreements.”

As for the rest of the inhabitants of the Eurozone – all of whom will be impacted in one way or another – most are blissfully unaware that it is even happening. A new continent-wide banking system is taking shape right before our eyes and under our noses, but our eyes are closed and our noses are blocked.

According to the official story, the citizens of Europe stand to benefit enormously from the banking union since it will impose greater control and tighter regulation of Europe’s banks. It will also save taxpayers from having to fund future bailouts. The only problem is: if the main point of banking union is to protect taxpayers and bank customers, why do the continent’s biggest banks seem so happy?

If the last six years have taught us anything, it is that when the big banks win, the rest of us lose. And if the banks lose (which, let’s face it, rarely, if ever, happens these days) the one thing you can guarantee is that they and their powerful lobbying representatives will kick up the mother of all stinks. None of which is happening. Indeed, quite the contrary: rather than seeing the new system as a threat, the banks see it as an immense opportunity.