STOCK MARKET WATCH -- Thursday, 16 July 2015

[Demeter]

7. European Union may ease bank capital rules to boost lending

THE EU IS A BAD PARENT...LETTING THEIR LITTLE DARLING BANKS OUT TO COMMIT MORE CRIME AFTER A BRIEF TIME-OUT...

http://www.reuters.com/article/2015/07/15/uk-eu-banks-regulations-idUKKCN0PP10D20150715

Tougher capital rules imposed on banks in the European Union since the financial crisis will be reviewed to see if they unnecessarily crimp lending, the bloc's financial services chief said on Wednesday, as Europe makes growth its top priority. Jonathan Hill said the bloc's capital requirements law may be changed to make it easier for banks to lend to companies.

Banks were found to be undercapitalised when the financial crisis began in 2007, forcing taxpayers to bail out many lenders, and a global set of tougher capital rules, known as Basel III, were subsequently approved and applied in Europe. Banks argue that the tougher rules have forced them to shore up safety buffers at the expense of lending, and several banks say the new rules have forced them to stop trading securities, making markets less liquid and more volatile.

THAT'S A FEATURE, NO A BUG. EUROPE HAS GLASS-STEAGAL, AND WE DON'T!