Cyprus: the stone on the beach — its financial problems and the eurozone
So here we go again — the world’s single biggest currency back in play.
Cyprus is a tiny economy but the treatment of its financial problems by the eurozone could have symbolic and far-reaching consequences. Cyprus is like a small stone on a big wide beach casting a long shadow all the way down the beach. It casts a long shadow because the sun over Europe is so low.
What happens in Cyprus has this shadow effect because potentially: it affects the attitude of depositors and capital market creditors in the eurozone generally and especially the countries with high debt ratios; it crosses the line of failing to protect deposits, thereby removing the confidence of depositors elsewhere in Europe; it causes creditors to question whether the eurozone assurances that Greece was a one-off are credible; it reduces the credibility of a banking union with EU-wide depositor insurance, EU-wide bank regulation and an EU-wide last-resort new money facility for failing banks; and there could be geopolitical consequences…
Click on the link below to read the rest of the Allen & Overy briefing.
News from The Lawyer
Analysis from The Lawyer
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.