EUROPE’s biggest banks are vulnerable and pose a huge risk to financial stability, according to some of Wall Street’s top bankers.
Financial heavyweights from the US and Switzerland joined forces to sound the alarm over Deutsche Bank and its peers.
Goldman Sachs’ president Gary Cohn hit out at eurozone banks for failing to clean-up their balance sheets after the financial crisis.
Speaking at the Institute of International Finance, the chief said the US banking sector was “in the best shape ever,” reported the Financial Times.
“What we are seeing today is that approach isn’t necessarily working.”
Nigel Vooght, global head of financial services at PwC, also joined in with the criticism.
He said: “Banks need to wake up and start to react, because they are an integral part of society, but they don’t have a divine right to be here … All the banks are trying to switch from an interest rate-based model to a fee-based model.”
Full article: Eurozone banks are in DEEP trouble: Wall Street top bankers issue warning to EU (Express)