New Debt Crisis Beckons for ‘Unstable’ German Banks in EU’s Next Meltdown

• New Debt Crisis Beckons for ‘Unstable’ German Banks in EU’s Next Meltdown
  by http://sputniknews.com/  
  “Europe is seriously ill,” according to Deutsche Bank, and while Italy’s problems have been well-documented recently, analysts told Sputnik that a closer look at German banks reveals that even Europe’s economic powerhouse could find itself financial difficulties.
  –
  While Brexit seems to have served as a catalyst for Europe’s political crisis, financial experts are warning that a crisis also appears to be brewing on the European financial front.
  –
  The structural weaknesses that became apparent during the 2008 financial crisis have not been tackled sufficiently, and analysts are worried that Europe’s banks are facing more financial pressure than they can cope with.
  –
  On Sunday David Folkerts-Landau, lead economist for Deutsche Bank, told German newspaper Die Welt that Europe must take action to tackle its economic problems, or face another crisis.
  –
  “Europe is seriously ill, and it must urgently address its problems, otherwise something bad will happen,” he warned, and recommended a multibillion euro program of recapitalization for flailing European banks.
  –
  According to Folkerts-Landau, Europe needs a recapitalization program similar to Troubled Asset Relief Program carried out in the US after the subprime mortgage crisis hit there in 2008. That program authorized the US Treasury to spend $475 billion on toxic assets and equity from struggling financial institutions.
  –
  “In Europe the program doesn’t have to be so big. European banks can recapitalize themselves with 150 billion euros ($167 billion),” Folkerts-Landau said.
  –
  Economics professor Guillaume Vuillemey from the Ecole des Hautes Etudes Commerciales de Paris (HEC Paris) told Radio Sputnik France that the problems in Europe’s banking sector are not confined to the more stagnant economies on the south of the continent.
  –
  Who will pay the price for Italy’s banking debts?
  –
  read more.

end