Euro Bank News Doesn’t Sound Good
Maybe I’m jumping to conclusions here but I don’t get the market reaction to the European bank news.
- These banks may be forced to seek funds immediately, so the market knows they’re under pressure.
- The banks are named in the report, so you have the possibility of a run on deposits.
- The only good news would be state aid and that could bring stability
- But at the same time, you have to think that if these ‘mid-size’ banks are hurting, the bigger ones are as well.