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:
- Too big to rescue, Feb 2009
- The top 25 European banks by assets, Feb 2009
- The largest European banks by assets, Jun 2010