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Deutsche Says Europe Crisis Could Kill Weak Banks

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http://uk.reuters.com/article/2011/09/05/uk-banks-europe-idUKTRE78426Q20110905

Europe's sovereign debt crisis will stunt bank profit for years and could kill off the weakest, Deutsche Bank Chief Executive Josef Ackermann told industry bosses, amid intense scrutiny of the sector's finances.

"Prospects for the financial sector overall ... are rather limited," the CEO of Germany's top bank said on Monday." The outlook for the future growth of revenues is limited by both the current situation and structurally."

Ackermann was speaking at Frankfurt's annual Banks in Transition conference against a backdrop of gloom in the capital markets, where fears some euro zone countries could default on their debts have sent investors scurrying for shelter.

Many European banks could go under if they had to accept a "haircut" at current market valuations on their entire sovereign debt holdings instead of the 21 percent writedown that has been proposed on Greek sovereign debt, Ackermann warned.

"It's stating the obvious that many European banks would not survive having to revalue sovereign debt held on the banking book at market levels," he said.

An interesting admission from the CEO here.

I doubt any bank will get killed off, I'm sure we'll follow the tried and tested Japanese model and just go for Zombies.

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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