Europe’s Lehman Moment?
A great quote from the above article –
“In aggregate, the
industry hasn’t achieved a return on equity above its cost of capital since
2008. What this means, in plain language, is that, for eight long years now,
banks have been roaring through their shareholders’ cash like drunken sailors
on shore leave.
With the prospect of interest rates staying lower for longer, and expensive transformations only just beginning, that doesn’t look like changing any time soon. Banks are discovering that the patience of their shareholders is not a limitless commodity.”
Related:
http://www.telegraph.co.uk/finance/economics/12149114/Europes-doom-loop-returns-as-credit-markets-seize-up.html
With the prospect of interest rates staying lower for longer, and expensive transformations only just beginning, that doesn’t look like changing any time soon. Banks are discovering that the patience of their shareholders is not a limitless commodity.”
Related:
http://www.telegraph.co.uk/finance/economics/12149114/Europes-doom-loop-returns-as-credit-markets-seize-up.html
Growing fears that European banks may be in (serious) trouble:
http://www.telegraph.co.uk/finance/economics/12147540/stock-markets-europe-banks-recession-crisis-crash.html
http://www.cnbc.com/2016/02/08/european-banks-face-major-cash-crunch.html
http://www.marketwatch.com/story/why-a-selloff-in-european-banks-is-ominous-2016-02-07