More about BIS from "The Tower of Basel" an excellent book..

"The BIS is a unique institution: an international organization, an extremely profitable bank and a research institute founded, and protected, by international treaties. The BIS is accountable to its customers and shareholders—the central banks—but also guides their operations. The main tasks of a central bank, the BIS argues, are to control the flow of credit and the volume of currency in circulation, which will ensure a stable business climate, and to keep exchange rates within manageable bands to ensure the value of a currency and so smooth international trade and capital movements. This is crucial, especially in a globalized economy, where markets react in microseconds and perceptions of economic stability and value are almost as important as reality itself.The BIS also helps to supervise commercial banks, although it has no legal powers over them. The Basel Committee on Banking Supervision, based at the BIS, regulates commercial banks’ capital and liquidity requirements. It requires banks to have a minimum capital of eight percent of risk-weighted assets when lending, meaning that if a bank has risk-weighted assets of $100 million it must maintain at least $8 million capital. The committee has no powers of enforcement, but it does have enormous moral authority. “This regulation is so powerful that the eight percent principle has been set into national laws,” said Peter Akos Bod. “It’s like voltage. Voltage has been set at 220. You may decide on ninety-five volts, but it would not work.” In theory, sensible housekeeping and mutual cooperation, overseen by the BIS, will keep the global financial system functioning smoothly. In theory....The BIS is now the world’s thirtieth-largest holder of gold reserves, with 119 metric tons—more than Qatar, Brazil, or Canada. Membership of the BIS remains a privilege rather than a right. The board of directors is responsible for admitting central banks judged to “make a substantial contribution to international monetary cooperation and to the Bank’s activities.” China, India, Russia, and Saudi Arabia joined only in 1996. The bank has opened offices in Mexico City and Hong Kong but remains very Eurocentric. Estonia, Latvia, Lithuania, Macedonia, Slovenia, and Slovakia (total population 16.2 million) have been admitted, while Pakistan (population 169 million) has not. Nor has Kazakhstan, which is a powerhouse of Central Asia. In Africa only Algeria and South Africa are members—Nigeria, which has the continent’s second-largest economy, has not been admitted. (The BIS’s defenders say that it demands high governance standards from new members and when the national banks of countries such as Nigeria and Pakistan reach those standards, they will be considered for membership.)"

Germany is said to support a move by the European Banking Authority to raise minimum capitalisation levels, a change that would lead to a need for financial support for banks with exposure to Greek or other sovereign debt risk. Mrs Merkel’s comments came as European Union finance ministers asked the European Banking Authority, Europe’s leading bank regulator, to test the strength of banks based on a large writedown of Greek sovereign debt, something many investors have called for. On Tuesday, the International Monetary Fund (IMF) had urged radical changes in the way the eurozone debt crisis was being handled and called for a €100bn to €200bn recapitalisation of European banks. Germany's intervention soothed markets but will intensify pressure on France. France, with banks that are among the most exposed, including its stake in Dexia, is opposed to recapitalisation. Nicolas Sarkozy, the French president, is concerned that the huge sums he might have to pay out could threaten the French AAA sovereign debt rating ahead of elections next year. Mrs Merkel dismissed suggestions that Greece could leave the eurozone and called on the last remaining national parliaments, in Holland, Malta and Slovakia, to approve measures allowing the €440bn European Financial Stability Facility (EFSF) to recapitalise banks and to buy bonds The EU and US are infected with uncontrollable spending, which is, clearly, the only thing that supports our Nanny State governments. We cannot grow out of this mess because government is too big and consumes too much of the economic energy in any state. Germany are still playing for time. This talk is just enough to keep the gravy train for Germany's exporter going with a shaky devalued euro. Germany still enjoys its economic miracle whilst presently inflicting pain on southern europe, Merkle's talk is that, all talk, Germany will not put up any real money.
Time for Germay, Finland, Austria, Netherlands, Luxumburg and perhaps france to leave the Euro.

Dublin and IMF

DUBLIN—After a week of declining offers of a bailout, Irish Finance Minister Brian Lenihan said Sunday he will recommend his government formally apply for an aid package from the European Union and the International Monetary Fund to shore up its public finances. Mr. Lenihan said on state broadcaster RTE Radio he will make the recommendation at a cabinet meeting later in the day. The finance minister said Ireland's banks have become "too big a problem for the country."
The government must now ensure that it is able to fund itself, that the economy remains stable and that Ireland can still borrow money in the financial markets, he added.
"So for all these reasons I will be recommending to the government that we should apply to a program and open formal negotiations," he said.
The step paves the way for the 16-country euro zone's second government bailout this year, following the emergency €110 billion ($150 billion) bailout plan for Greece in May.
Ireland will have to knuckle down on public spending to meet EU guidelines, which many worry will trigger protests like the ones seen in Greece. The Irish Congress of Trade Unions already has planned a protest Nov. 27 against more government cuts.
Irish bond investors could become better protected against default risk. But market watchers worry whether the latest blow to the prestige of the euro will intensify scrutiny on the finances of other fiscally weak governments, such as in Portugal or Spain.traian basescu,emil boc.vadim.radu tudor,imobiliare,restaurante,auto.ro,ziare.ro