Public Lecture on The Irreversible Path to Euro Fracture

Public lecture on the Irreversible Path to Euro Fracture organized by the Finance Department and the Scientific Research Center for Monetary and Economic Research was held in the Scientific Councils Hall of the university. The guest-lecturers who spoke to students and lecturers were Gordon Kerr, member of the consultant company Cobden Partners in London, expert in investment banking, bank regulating and reporting and Cavin O`Driscoll, bank expert and member of the consultant company Cobden Partners.  

In the Scientific Councils Hall

The meeting was opened by Chief Assist. Dr. Diana Todorova Miteva from the Finance Department who presented both lecturers.

Dr. Diana Miteva is opening the meeting. On the left – both guest-lecturers

Gordon Kerr - a specialist having huge experience in analyzing the bank bankruptcies and governmental debts - commented on the possible effects of Brexit as he gave a positive prognosis about the economy of the country. According to him, however, the Euro fracture is evident and inevitable having in mind the threats coming from Italy to the unified currency. The expert based his statements on the model created by the Italian government in the small bank Banca Popolare di Bari. By the analysis of a transaction implemented by the bank the deteriorated state of Italian banking system is evident.

During the lecture of Gordon Kerr (on the left) and Cavin O`Driscoll

A detailed data analysis for the cited bank operation was made also by Cavin O`Driscoll.

Gordon Kerr outlined that the problems of Italian banks had had an impact also on the European Central Bank which would lead to the inevitable Euro fracture. According to his words the European banking system had been in the state of “full collapse” as a result of “the policy of easy money and stress tests” showing only data for risk weighted assets. He emphasized that the stress tests problem could be found not only in the selection of scenarios but also in the choice of the model and numbers they had been based on.

Attendees at the lecture

In conclusion the expert examined the consequences of all that also on the investment and gave some guidelines to overcome the crisis and solve the problems in the European banking system.