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France Telecom and Deutsche Telekom have mountains of debt and feeble share prices, but are protected by implicit state support.
Some firms may be growing not to lower costs but to receive the comfort of implicit state support.
But it would continue to enjoy implicit state support, unless markets can be convinced that it would be allowed to fail if it got into trouble.
Implicit state support was no doubt helpful, but this did not amount to a bail-out: Satyam had to raise bridge finance on its own from private-sector banks.
Any suggestion that a European state might not honour a guarantee could shed doubt on the implicit state support behind the German Landesbanken.HAA's creditors might prefer to get their cash back soon, at a small discount, rather than awaiting an uncertain payout under the deficiency guarantee.
They also held MBS directly, funded by issuing debt.In this section The prodigal son On their own Step change Knowing too much A dream dispelled Beyond Basel The ugly twins of finance The benefits of Brentry ReprintsThe GSEs' business was risky, and it rested on implicit state support.
Similar(54)
Their state support, implicit or explicit, seems likely to remain.
Direct state support for energy sectors is not large in Ukraine compared to very high implicit subsidies due to under-pricing of energy products.
And deposits enjoy an implicit state guarantee.
State support has helped.
All the banks benefited from an implicit state guarantee.
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