Archive for October 17th, 2008

On the Finanzmarkt-Stabilisierungsfondsgesetz

Friday, October 17th, 2008

shop widow in Munich’s Amalienstrasse

Today the german “stabilization law” mentioned in the last randform post, which was hastingly put together within a couple of days and which concerns an amount of money which is in the order of the costs of the german unity, is going to be passed.

With it

a chance to politically regulate the remuneration schemes of banks will be missed.

Since -with this law, it is on one hand in principle possible to adjust the time validity of remuneration obligations via Rechtsverordnung (which means in particular without the need of parlamentary involvement), however on the other hand as indicated on the webpage (same as in last post) there seems to be no intention to do this on a broad scheme. In particular I hereby repeat (like for those with an attention deficit syndrome..:)) the current legislation means that

only corporations, which are already in big troubles have to comply to remuneration regulatory means.

(for more see last post)
This implies that probably no real changes in the banking system will take place and I am asking myself how this could possibly raise the trust of savers.