German Central Banker Warns About High Levels of Sovereign Debt

he president of Germany’s central bank has warned of rising levels of government debt on bank balance sheets and has called for a regulatory overhaul.

Writing in the Financial Times, Jens Weidmann, head of the Bundesbank, said the “deadly embrace” in which banks with heavy exposure to euro zone sovereign debt need rescuing, needs to be broken.
According to him, rather than cutting back on sovereign debt, euro zone banks had actually increased their holdings of sovereign bonds since the crisis.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza