Predicting the form and substance of mainland Chinese bank failures has become a cottage conspiracy industry among research analysts and hedge funds.
A more enlightening exercise is observing how other current government authorities and bank leadership have succeeded or failed, or have been swamped by indecisiveness and serial mediocre decisions in the face of default.
The recent December rescue and recapitalization actions by the European Central Bank for Bank Monte dei Paschi di Siena (MPS), Italys third largest bank, make an insightful, frightening and ongoing narrative.
Mainland Chinas regulators will face the same regulatory and bank management pitfalls if and when they must resolve, restructure and rescue banks overcom…
Read the full article at: http://www.scmp.com/business/banking-finance/article/2067532/europes-bank-monte-bailout-offers-object-lesson-need