Friday, November 29, 2013
The President Of The European Central Bank Calls For Greater Unity And Less Nationalism
The ECB has become the bank regulator for the EZ. Its president defends the bank's interest rate cut by arguing that rates are low because the economy is slow. The decision of the ECB to cut rates was criticized by leaders in Germany who claim that it was done to remedy problems for specific countries. The ECB also needs to create a resolution trust that can deal with the problems that might arise from troubled banks in the EZ who may not have enough capital to deal with impaired loans.