Scholz: ‘No Reason To Worry’ As Deutsche Bank Bloodbath Reignites Global Bank Crisis Fears
- Scholz: ‘No Reason To Worry’ As Deutsche Bank Bloodbath Reignites Global Bank Crisis Fears
by Tyler Durden, https://www.zerohedge.com/
Update (0900ET): The jawboning has begun:- GERMANY’S SCHOLZ: EUROPEAN BANKING OVERSIGHT IS ROBUST AND STABLE, DEUTSCHE BANK IS `VERY PROFITABLE’, NO REASON FOR WORRY
- ECB’S LAGARDE TELLS EU LEADERS EURO AREA BANKING SECTOR STRONG, ECB FULLY EQUIPPED TO PROVIDE LIQUIDITY TO EURO AREA FINANCIAL SYSTEM, IF NEEDED
- MACRON: EUROPEAN BANKS HAVE SOLID FUNDAMENTALS
That prompted a (very) brief pop in bank stocks…
Goldman Sachs’ traders said they think the pain in European banks is “simply a function of market selling leveraged and opaque business models post CS, with some discomfort on what may roll out of 1Q IB earnings following the spike in rates vol. There’s also 7% of the loan book in CRE (EUR33bn), of which 51% in the US. Total office exposure is 34%, which is the market’s core area of concern, so could say the range for US office is EUR5.5-11bn”
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