Jens "I don't say no to everything" Weidmann just said "nein" again. This time confirming Germany's position that the banking union idea - or an aggregation of deposit guarantees - will not cover existing bad debts. In other words, this will not be allowed to become a back-handed way of transferring wealth from Germany to peripheral banks in a free lunch. He had more to say (via Bloomberg):
- *WEIDMANN: MUST ENSURE PEOPLE DON'T LOSE TRUST IN CENTRAL BANKS
- *WEIDMANN SAYS CENTRAL BANKS SHOULDN'T TAKE ON FISCAL TASKS
- *ECB'S WEIDMANN SAYS PRINTING TOO MUCH MONEY LEADS TO INFLATION
- *WEIDMANN SAYS BANKING UNION NEEDS TIME FOR PROPER PREPARATION
- *WEIDMANN SAYS BANK UNION SHOULDN'T COVER EXISTING BAD DEBTS