{"id":10475,"date":"2015-07-28T18:08:52","date_gmt":"2015-07-28T23:08:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10475"},"modified":"2015-07-28T18:08:52","modified_gmt":"2015-07-28T23:08:52","slug":"austrian-bad-bank-black-swan-bail-in-is-unconstitutional-austria-declare","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10475","title":{"rendered":"Austrian Bad Bank “Black Swan” Bail-In Is Unconstitutional, Austria Declare"},"content":{"rendered":"

Austrian Bad Bank “Black Swan” Bail-In Is Unconstitutional, Austria Declare<\/a><\/h3>\n

The subject of bail-ins and bank resolutions is back in the news this month as every eurocrat in Brussels scrambles to determine the best way to recapitalize Greece\u2019s ailing banking sector, which, you\u2019re reminded, is sinking further into insolvency with each passing day thanks to the unyielding upward pressure on NPLs that\u2019s part and parcel the country\u2019s outright economic collapse.<\/p>\n

And while you could be forgiven for focusing squarely on the trainwreck that\u2019s occurring in Athens, it would be a mistake to ignore the fact that just a few months back, a\u00a0black swan landed<\/a>\u00a0in Austria when a \u20ac7.6 billion capital hole was “discovered” in Heta Asset Resolution, the vehicle set up to resolve the now defunct lender Hypo Alpe-Adria-Bank.<\/p>\n

In short, the bad bank went bad, and when it became clear that no further state support was forthcoming, Heta Asset Resolution was\u00a0itself<\/em>\u00a0put into resolution and a moratorium on bond payments was declared.<\/p>\n

The debacle raised a number of troubling issues not the least of which involves the\u00a0beautifully picturesque<\/a>southern Austrian province of Carinthia, which had guaranteed some \u20ac10 billion worth of Heta debt despite the rather inconvenient fact that annual provincial revenues only amount to around \u20ac2.3 billion.<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Austrian Bad Bank “Black Swan” Bail-In Is Unconstitutional, Austria Declare The subject of bail-ins and bank resolutions is back in the news this month as every eurocrat in Brussels scrambles to determine the best way to recapitalize Greece\u2019s ailing banking sector, which, you\u2019re reminded, is sinking further into insolvency with each passing day thanks to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[42,3855,46,2015,54,77,1719,7606,3325,285,359,1167,3857,6048,7605,4318],"class_list":["post-10475","post","type-post","status-publish","format-standard","hentry","category-economics","tag-austria","tag-bad-bank","tag-bail-in","tag-bailout","tag-bank-failures","tag-black-swan","tag-bond","tag-carinthia","tag-creditors","tag-eurozone","tag-germany","tag-greece","tag-heta-asset-resolution","tag-none","tag-raiffeisen","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10475"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10475\/revisions"}],"predecessor-version":[{"id":10476,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10475\/revisions\/10476"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}