http://www.voxeu.org/index.php?q=node/1669
Fortis tested the problem and went well (good cross-border synchronization). Others may not fare so well. Deutsche Bank looks scary.
On the point of higher gross leverage in the EU than US, we come to realize that being more advanced in adoption of IRBA risk-weighted assets also means EU banks had a head start in regulatory arbitrage. Which means more pain in the future, and depository business routinely threatened by the capital market arms of universal banks. Pierre
BeNeLux has been very well economically integrated for over 50 years, so no surprise there...
Elsewhere, I don't know. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
From analysts at Cazenove - two lists ranking the wholesale funding needs of European banks. They help explain why certain financial names were the biggest fallers across all continental markets on Monday. Ranking as a multiple of market cap: ... And also by short-term maturity: ...
Ranking as a multiple of market cap:
...
And also by short-term maturity:
Bloomberg.com: U.S.
Sept. 30 (Bloomberg) -- Dexia SA, the world's biggest lender to local governments, will get a 6.4 billion-euro ($9.2 billion) state-backed rescue after worsening financial markets drove the shares to a record decline. Belgium's federal and regional governments, France and the company's largest shareholders will supply the funds, according to a statement from Belgian Prime Minister Yves Leterme today.
Sept. 30 (Bloomberg) -- Dexia SA, the world's biggest lender to local governments, will get a 6.4 billion-euro ($9.2 billion) state-backed rescue after worsening financial markets drove the shares to a record decline.
Belgium's federal and regional governments, France and the company's largest shareholders will supply the funds, according to a statement from Belgian Prime Minister Yves Leterme today.
