The CEO of UBS reassured investors, in a CNBC interview, that the European banking system was doing great. When asked to discuss the ongoings at Deutsche Bank, he opted to not discuss it — scared to rock the boat. Then in the very next sentence he said the ‘macro environment is not very constructive for banks’ — laying blame on negative rates and low growth.
Deutsche Bank is an ‘idiosyncratic’ situation, according to the UBS Chief — a mere isolated and hugely systematic situation. He’d prefer to not discuss it and that it’s time to move on. He has enough problems.
Year to date losses of the European banking sector: Deutsche Bank is down 45%, Credit Suisse -35%, Lloyd’s of London -33%, Barclays -32%, UBS is down 24% Intesa San Paolo -41%, E.On -30%, Societe Generale -28%, Axa -25%, Banco Popolare -77%, UBI Banca -67%, Unicredit -61%, RBS -40%, Banco Popular -60%, IAG -45%, Bankia -31%.
Later on he mentioned potential bubbles forming due to low rates. I wonder what he really thinks? It seems to me the more he speak, the more his truth leaks out.
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Price is truth.
Yo Fly…just to keep you right, it’s Lloyds not “Lloyds of London”, the former being the bank and the latter being the completely unconnected reinsurance market. Also E.on is a German utility co and IAG is basically British Airways/Iberia. @2and20