This morning the Financial Times published a comment piece by Adam Posen and myself, in which we briefly outline the proposal of our policy brief 'A Solution for Europe's Banking problem', that a number of European states should jointly create a trustee to manage the triage, restructuring and resolution processes that are indispensible to heal the European banking system.
Click here to download the piece if the above link does not work.
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The Bank for International Settlements has just announced that national governments have done too little to clean up their banking problems, and it is right. The European Summit concluded that there can be no fiscal federalism to transfer funds between banking systems, were they to require recapitalization.
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