Actually, I'm far from being the only naysayers about the health of European banks, in German banks in particular. The reason German banks are in trouble is that the two biggest cannot count on their domestic operations -- because DB and Commerzbank only account for 15% of the domestic depositor base (compare that to Canada's nine largest banks that account for 95% of all deposits). Moreover, European governments decided to shield their banks from reform requirements after 2009, even their 2009 intervention was different than in North America -- in the US the Treasury took shares as collateral for their "investments" in Europe they got bonds -- limiting control and upside potential.
The reality is that DB/Commerzbank merger dies (rightly) a few weeks ago because taking two bad banks and making them into one bigger bad bank is not a good idea -- for politicians!
So the American Conservative Blog wrote about the European banks here, and it's interesting to see your views reflected by others! Bottom line virtually all continental European banks are in trouble -- and if they fail, they will infect the rest of the world's banking system...reassuring words!
The reality is that DB/Commerzbank merger dies (rightly) a few weeks ago because taking two bad banks and making them into one bigger bad bank is not a good idea -- for politicians!
So the American Conservative Blog wrote about the European banks here, and it's interesting to see your views reflected by others! Bottom line virtually all continental European banks are in trouble -- and if they fail, they will infect the rest of the world's banking system...reassuring words!
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