European bankers are once again calling for publicly funded bailouts. I was amused to read (zero hedge) about Dijsselbloem’s comments:
Italy’s ongoing attempts to bend Europe’s bail-in rules and revert to the “older” bailout protocol continue to run into problems. The latest confirmation came from Eurogroup head Jeroen Dijsselbloem who earlier today said he was not “particularly” worried about Italian banks. More interesting was his insistence that “there have always been and will always be bankers that say ’we need more public money to recapitalize our banks…. and I will resist that very strongly because it is, again and again, hitting on the taxpayer.” He then added that “the problems with the banks need to be sorted out in the banks and by banks.”
He sided further with the Merkel camp when he said that he finds the ease in which bankers ask for public funds to sort out problems is “very problematic.”
Dijsselbloem added that “there has to come an end to” bankers asking politicians to solve their problems.
His statement comes just a day after David Folkerts-Landau, the chief economist of Deutsche Bank, called for a €150 billion bailout for European banks, confirming that it is no longer just an “Italian” issue.
I am reminded of an episode earlier in my career. One of our very largest customers was making a habit of demanding aggressive pricing, so a senior executive was dispatched to discuss the matter at the executive level. He asked why they were so hard on us on pricing. The customer executive looked at him and said “Because you never say no.”
That, Geachte Heer Dijsselbloem, is why bankers ask for public money.