Banking

It could take a while until European leaders recognise that the answer to the failings of European integration does not always have to be even more integration.

John Cryan is already making clear that under his leadership, Deutsche Bank will make a break with its immediate past – or indeed, reconnect with its history.

The New Zealand Super Fund’s battle with Portugal is the first major clash in the two countries’ history. Fortunately, we do not have to expect any kind of retaliation, nor will the two sole frigates in the Royal New Zealand Navy set sail for Lisbon anytime soon.

The ECB’s big experiment with negative interest rates is finally reaching ordinary people and two things are ironic about it: First, that it was a bank with a hint of gambling in its name which finally drove this message home. And second, that of all weeks in the calendar it had to happen during world savings week: the last week in October when European banks traditionally pretend they like to manage assets and encourage savings. If only.

The Bundesbank has put forward its own proposal on how to deal with acute debt crises in the future. On closer inspection, it is plain to see that the Germans are as orthodox as ever.

As the sovereign debt crisis lingers, we should pay more attention to the complex and obscure issues facing Europe’s banking system. It will be one of the main battlegrounds of the euro crisis for the coming year.

It could be quite a rude awakening after the September 22 election. An unsuspecting German public will quickly find out the real state of the euro, how much saving it will cost and what share of banking losses Germany’s savers and taxpayers will have to take in the euro periphery.

Vertrauen mag der Anfang von allem sein. Aber die Finanzkrise hat gezeigt, dass es auch unter ordnungspolitischen Gesichtspunkten am Ende nicht ohne eine intelligente Kontrolle des Bankwesens geht. Bankenzerschlagungen braucht es dazu gleichwohl nicht, wohl aber eine konsequentere Durchsetzung des Prinzips der Haftung sowohl für Bankaktionäre als auch für Topbanker.