German Finance Minister Publishes New Banking Union Plan To Save The EU (And Deutsche Bank) | WHAT REALLY HAPPENED

German Finance Minister Publishes New Banking Union Plan To Save The EU (And Deutsche Bank)

Less than a year after his finance ministry failed to broker a merger between Commerzbank and Deutsche Bank in a bid to rescue the flailing German lending giant (Deutsche) and create a new national champion (or so he hoped), German Finance Minister Olaf Scholz is embarking on a campaign to convince the European Union to finish work on a comprehensive banking union.

Many have argued that Europe's lack of a comprehensive banking regulatory framework make the system particularly vulnerable to chaos and infiltration by criminal groups (evidenced by the money laundering scandal that has embroiled several northern European banking giants).

And with Brexit finally nearing the end game, or so it appears, Scholz argues that Europe's global position would be at risk if it doesn't finish the integration of the eurozone's financial sector, seeing as the EU is losing one of its main financial centers in London.

The plan to centralize oversight of eurozone banks was conceived years ago in response to the debt crisis that threatened to destabilize the entire continent earlier in the decade. Many have argued that the system would help avoid taxpayer bailouts with a new deposit guarantee scheme designed to help keep liquidity taps open. However, some have criticized the plan (especially within Germany) as a scheme to leave German taxpayers on the hook for mismanagement of foreign banks).

Webmaster's Commentary: 

With Europeans already up in arms on the effects of inviting unvetted immigrants, adding this potential financial pain to German taxpayers, will most probably, cause the next German elections to veer wildly to the right.

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