Europe’s Other Bank Problem

By Global Macro Monitor

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!

Also see:


Global Macro Monitor is a site designed as a “go to” source for traders, investors, policymakers and any interested in markets and the global economy. It provides informed opinion, timely market information, sources, and links.