Europe’s Other Bank Problem

One would think the following chart has a data error.   Not so.

Europe is way over banked and the chart illustrates the monumental task and cost of recapitalizing some of their largest banks.  The size of the largest four banking institutions in France, for example,  represents over 300 percent of the country’s GDP.   The markets will monitor carefully the sovereigns’ incremental obligation of the new recapitalization plan.    They need to be careful not to turn France into Ireland,  for example, which will definitely be game over for the Euro.    Stay tuned.

P.S.   Long Swissie during a European banking crisis?   No thanks!

(click here if chart is not observable)

About these ads
This entry was posted in Charts, Euro, Sovereign Debt, Sovereign Risk and tagged , , . Bookmark the permalink.

One Response to Europe’s Other Bank Problem

  1. Pingback: Weekend Reading – Stuff we found interesting this week | Lighthouse Securities

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s