Existential crisis as Europe’s banks near the point of no return
There is a non-zero chance that European governments may be forced to nationalise parts of the banking system, as there is little reason for investors to hold these shares now
The index of European bank stocks fell to an all-time low this month. The decline reflects poor earnings prospects for European banks, in particular German banks. If the fall continues at its current rate, there is an increasing risk that European governments may be forced to nationalise parts of the banking system. The cause this time is not bad ...