Europe’s banks also need to shore up their capital, not just borrow liquidity, say three experts on international finance.
STANFORD GRADUATE SCHOOL OF BUSINESS — The steps being taken to solve Europe’s sovereign debt crisis are likely putting an end to speculation that the European Union could come apart, says finance Professor Darrell Duffie of the Graduate School of Business. But current negotiations among Europe’s finance and political leaders are not likely to go all the way toward solving the union’s long-term fiscal problems.
At a Feb. 8 campus discussion of the debt crisis, Duffie and two other experts on international finance also chastised European banks for not doing more to shore up their capital. The others were Kenneth E. Scott, the Ralph M. Parsons Professor of Law and Business, Emeritus; and Patrick Brown, a lawyer with Sullivan & Cromwell LLP in Los Angeles. Read more here .