Fortis and the need for urgent European reforms

Commentary feature. Europe’s universal banks were supposed to be immune to the fallout from the subprime crisis. But we are now discovering that any financial institution is vulnerable if its leverage is too high. The key issue for Europe is not only that its largest banks are vulnerable because they have high leverage, but that they have grown too big to be saved by any single government. Authors suggest ways forward.

ESO: Background information: European banking on borrowed time http://www.europeansources.info/record/european-banking-on-borrowed-time/

ESO: Background information: Fortis's woes lie with ABN Amro deal http://www.europeansources.info/record/fortiss-woes-lie-with-abn-amro-deal/

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