EUROPE's biggest banks are vulnerable and pose a huge risk to financial stability, according to some of Wall Street's top bankers.
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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.
And then added: “Other [parts of the world] provided cheap financing to their banks to allow them to earn their way out of the crisis and hoped that asset prices would recover.
“What we are seeing today is that approach isn’t necessarily working.”
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.
And then added: “Other [parts of the world] provided cheap financing to their banks to allow them to earn their way out of the crisis and hoped that asset prices would recover.
“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.”
Last week the International Monetary Fund said the European banking sector, particularly Deutsche Bank, was a risk to the world banking system.
http://www.express.co.uk/finance/city/719555/Eurozone-banks-in-deep-trouble-warns-Goldman-Sachs-boss
