As Commodities Plummet, Banks Edge Towards Undercapitalization
Posted: Wed Feb 17, 2016 4:14 pm
Analysts from Bernstein Research state that European investment banks and US brokers are in general still undercapitalized, despite 6 years of spending aimed at remedying the situation.
According to the analysts, Deutsche Bank’s tangible equity is just 2.7% of its tangible assets. This is when we exclude the deferred tax assets. The only bank that has it worse is Credit Agricole with 2.3%. A little better is Credit Suisse with 3.0%. Standard Chartered looks good for now (7.3%) but it’s being heavily pushed by the markets that bank with commodity exposure.
At the same time we have the French banks like SocGen ... (read more)