Whoops on European Banking

Josef Ackermann just gave a terrifying speech about the fragility of the Euro banking sector right now.
At a conference in Frankfurt he said, "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."


Read more: http://www.businessinsider.com/josef-ackermann-euro-banks-speech-frankfurt-2011-9#ixzz1X7EBkV00 Business Insider

Euro banks hold a lot of worthless Greek bonds and their capital has been reduced by 30%. The Greek bonds are, well, in default is the best definition by now. Hence a wave of consolidation in Euro banks is coming.