International Confusion, Round 2
In May 2010 we attended a conference at which, on the second day, people stood around a TV screen and watched riots in the streets of Athens as the government considered austerity measures to address the potential for a debt default.
This January, we watched the same scenes, this time from perspectives that find instability in Europe more worrying than US bank stability. The same countries in the news in 2010 continue to struggle with the aftermath of the Eurozone bailout, and the debate continues over the measures necessary to prevent a further economic destabilization of the Eurozone economies.
We observe that these events will have continued implications for US-based multinationals, not least of which is the volatility around global bank appetites for debt, given regulatory concerns in the Eurozone. Elsewhere in this issue, Marcia Banks reports on her summer conversations with European banks and regulators. Whether we like it or not, regulation, bank capital, and return are back on the front burner, especially concerning the Eurozone institutions.