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BUSINESS A25
Tuesday 9 February 2016
How to fix the euro: Top bankers urge closer ties
DAVID McHUGH ing recessions in the United The President of the European Central Bank Mario Draghi waits for the beginning of a news confer-
AP Business Writer States, but is less common ence in Frankfurt, Germany. The top central bankers from France and Germany are joining in an
FRANKFURT, Germany (AP) in Europe. They also advo- appeal to fix longstanding flaws in the euro.
— The top central bankers cate completing a system
from France and Germany of Europe-wide banking (AP Photo/Michael Probst)
are joining in an appeal regulation and oversight.
to fix longstanding flaws in The EU has implemented cal traction. The European kets. The shared currency, countries such as Greece,
the euro currency by more some aspects of the so- Commission, however, is set up in 1999, was shaken Ireland, Portugal, Cyprus
closely integrating their called banking union, already working on a plan by a crisis starting in 2009 and Spain, all of which
economies and putting aimed at preventing bank to expand companies’ op- over excessive government needed bailout loans from
more authority over finan- bailouts from overwhelm- portunities to link up with in- and bank debt in member the other member states.
cial policies at the Europe- ing national budgets, but vestors through share mar-
an level. the scheme still lacks full-
Francois Villeroy de Galhau fledged deposit insurance
and Jens Weidmann ar- at the EU level.
gue in an article Monday in Such measures, combined
the Sueddeutsche Zeitung with a new EU-wide invest-
daily that the 19 member ment program, could en-
countries must get mov- courage investors to shift
ing on measures to make money out of savings and
the shared currency work toward productive use in
better and keep trouble in the economy, Weidmann
one country from infecting and Villeroy de Galhau
others. Those measures in- wrote. Ultimately, they
clude increasing cross-bor- said, the EU should decide
der shareholding in compa- whether to create a Euro-
nies, which would spread pean finance ministry and
the burden of downturns as fiscal council that would be
losses from a troubled com- subject to parliamentary
pany would be shared by control.
investors in different coun- The finance minister idea
tries. Such shareholding is has been proposed be-
a major factor in smooth- fore but gained little politi-
Chesapeake: no plans to file for bankruptcy
NEW YORK (AP) — Chesa- People walk past one of the entrances to the Chesapeake En-
peake Energy sought to ergy Corporation campus in Oklahoma City. Chesapeake En-
assure investors Monday ergy sought to assure investors Monday, Feb. 8, 2016, that it is
that it is not planning to not planning to file for bankruptcy protection.
file for bankruptcy protec-
tion. The announcement (AP Photo/Sue Ogrocki)
came after a news report
that said it hired a law firm to report quarterly results noon trading Monday. Its
spooked investors and sent later in February. For the shares are down about 90
its stock plummeting. nine months ended Sept. percent in the last year.
The natural gas producer 30, Chesapeake Energy
said it is working with Kirk- lost $12.63 billion, or $19.07
land & Ellis to “strengthen per share, compared with
its balance sheet” and a year-earlier profit. Re-
currently has “no plans” to sults were weighed down
file for bankruptcy. Chesa- by hefty asset impairment
peake said the law firm has charges. Revenue was
advised the company for $8.69 billion, down 45 per-
about 6 years. On its web- cent from the same nine-
site, Kirkland & Ellis says it month period in 2014.
works with clients to help Shares of Chesapeake En-
with litigation, taxes, intel- ergy Corp. fell $1.05, or 34
lectual property and re- percent, to $2.01 in after-
structuring matters.
Chesapeake has struggled
as natural gas prices have
declined. The Oklahoma
City company has slashed
spending, sold assets and
cut jobs to save money.
Last month, it also ended
dividend payments for its
preferred stock, a move
that saves the company
$170 million per year.
The company is scheduled
