Time Bomb? Banks Pressured to Buy Government DebtBy Jeff CoxCNBC Jun. 01, 2012 |
Rep. Randy Fine: Pro-Palestine Movement Are 'Demons' Who 'Must Be Put Down by Any Means Necessary'
ADL Responds to DC Shooting With Call to Deplatform Twitch Streamer Hasan Piker
Israeli PM Netanyahu: Trump Told Me 'I Have Absolute Commitment to You'
Trump Confronts South African President on White Genocide
CNN: U.S. Officials Say Israel Preparing Possible Strike on Iran
![]() US and European regulators are essentially forcing banks to buy up their own government's debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says. Regulators are allowing banks to escape counting their country's debt against capital requirements and loosening other rules to create a steady market for government bonds, the study says. While that helps governments issue more and more debt, the strategy could ultimately explode if the governments are unable to make the bond payments, leaving the banks with billions of toxic debt, says Citigroup strategist Hans Lorenzen. Read More |