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September 21, 2008



Nice article.
Like to read more on this.
Thanx for posting.


Kevin Drum wrote a post about that topic too. One of his commenters mentioned different accounting standards:

"As i understand it the main reason for the differences in the leverage ration between the european banks and the US banks is down to the differences between the accounting standards used. The EU uses IFRS which is stricter about which assets are to be carried on the balance sheets (and therefore show up in the leverage ratios) than the GAAP standards used by US banks.

For example Deutsche Bank in 2006 had 448 billion euros in assets on the balance sheet using GAAP but 1010 billion in assets under IFRS."

Don´t know if that´s true. And if true did vox take it into account?


The point is: DB is so highly leveraged that it used AIG credit guarantees to comply with capital requirements. What will happen once those guarantees are unwound?

hypotheek lasten

I have no doubt to believe that the key problem is that the largest European banks have become not only too big to fail but also too big to be saved.I Think the rescue measure like bailout option
is not something like a magic stick for all companies with the threat of bankruptcy.The aim of bailout option is not only to save companies to bankrupt,but its much more use is to break the viscious cycle of global financial recession . And if Deutsche Bank is one among those with no other solution than bailout,Yes I think they should consider it.

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