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European Union banks have been suffering since 2007. And several of the major EU banks settling in at all-time lows, like Italy’s Banca Dei Pasche Siena and Unicredit, UK’s Royal Bank of Scotland and Germany’s Deutsche Bank and Commerzbank.
About a third of the Bloomberg Eurozone Sovereign Bond Index ineligible for purchase under the ECB’s quantitative-easing program. The gains mean $2.2 trillion of debt in the index now yields less than the institution’s deposit rate — currently minus 0.4 percent — and is therefore off-limits.
The banking crisis in the EU is not restricted to Italy, Germany and UK. The National Bank of Greece has a price per share path resembling “the others.” At € 0.184. A virtual penny stock. Or Gyro (Euro?) stock.
Well, at least Greece is eligible for ECB’s QE programs.
Opa is Greek for “Your banks are burning!!!”
The question is .. who will bail out (or bail in) all these EU banks if the ECB isn’t able?
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