2016-07-08 18:07

Dare to Dream: The Mergers That Could Help Fix the Banks

Lucaso Jacksono („Reuters“/„Scanpix“) nuotr.
Lucaso Jacksono („Reuters“/„Scanpix“) nuotr.
Eight years after the financial crisis, bank bailouts are being discussed once again in Europe. Low and even negative interest rates, the weight of soured assets, high legal bills and new digital competitors are all depressing shares and executives. Britain’s decision to leave the European Union has further undermined confidence in the banking sector.

This week, an index of European bank shares fell to the lowest since 2011. With another potential crisis looming and political uncertainty throughout Europe, large cross-border bank deals have perhaps never been as unlikely. But that doesn’t mean they wouldn’t help.

In nearly every other industry, the combination of stagnant growth, distressed valuations and need for consolidation would lead to a raft of mergers and acquisitions. In finance, disastrous bank combinations and bailouts of too-big-to-fail firms are fresh in regulators’ minds.

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