Josef Ackermann, the chief executive of Deutsche Bank, has warned that numerous European banks would not survive having to revalue sovereign debt held on their banking books at market levels.
Ackermann is of the view that the current market conditions (and mood) are at the levels last seen during the financial crisis of 2008.
However, despite calls by the IMF for a further recapitalisation of banks, Ackermann believes that this would signal that the politicians do not themselves believe in the measures they have implemented to bolster fragile eurozone countries.
Fair comment, maybe.
However, the markets are not listening to the politicians as they have failed to show any form of leadership during the build up to this crisis.
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