雅思阅读：Unlike in 2008, banks' exposures are there for all to see_雅思英语阅读

雅思阅读：Unlike in 2008, banks' exposures are there for all to see

　　A prepare for the worst approach, i.e. a preventive recapitalisation of all banks as in 2008, therefore seems less convincing. For two reasons: firstly, it is rather bizarre that governments should use public money to recapitalise banks, forcing them to build a capital buffer against public defaultan event that only becomes more likely if governments have to channel so much money into banks to protect them against it. Sounds rather absurd.

　　Secondly, a default of, say, Italy would be financial Armageddon. Bolstering capital buffers to hold out against such a shockwave would be like re-arranging the deckchairs on the Titanic. There is no reasonable amount of capital that could protect banks against it.

　　Simply more capital is not the solution. This is also evidenced by the woes of Dexiawhich would pass even the toughest stress test but is nonetheless a failed bank because its business model lacks a stable funding base. The lesson is clear: as long as investors fear further writedowns on government debt, a high capital ratio will not dispel such mistrust.

　　It is more convincing to tackle the root of the problem. The EFSF should be put to better use than tossing more money at the banks. Governments should instead eliminate the risk that such a need could ever arise. In other words, they have to quash the probability of sovereign default in the euro zone, neutralise the Greek factor and make sure that all other countrieswhich face liquidity problems but are not insolventwill honour their debt. Besides meaningful consolidation and reform efforts, that requires an efficient crisis management mechanism to stop contagion. In that respect, the most promising idea is to allow the EFSF, and then its permanent successor the ESM, to function as a bond insurer. Only then, will investors distrust towards banks be lifted.