Today the head of Germany's Deutsche Bank warned of the imminent collapse of many European banks unless certain steps are taken that are reminiscent of the massive taxpayer bailout of Wall Street in 2008-2009.
According to a report in The Telegraph, Josef Ackermann of Deutsche Bank warned of the pending collapse:
As many of us have been warning for the past 2 years, get set. This is going to get ugly. And yes, it will be much worse than 2008."Numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."Mr Ackermann said market conditions were as febrile as the height of the banking crisis. "We should resign ourselves to the fact that the 'new normality' is characterised by volatility and uncertainty," he said. "All this reminds one of the autumn of 2008."