Who will pay for bank losses?
If another banking crisis arrives, the only solutions are likely to involve either raiding bank deposits or bringing back the punt, writes david McWilliams.
This week, let's consider the probability of another banking crisis. Mortgage defaults - both owner-occupier and buy-to-lets - could overwhelm the banks' fragile capital buffers, meaning the banks will need more capital in the next few years. Because the Irish state is bust and has no capital to give, this new capital can only come from two places. The first source is the European institutions (or the taxpayers of the richer countries). The second source...
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