Here’s Why European Banks are Backsliding Now

In October, the 10 largest U.S. prime money market funds had a 9% M/M drop in their exposure to EU banks and enlarged their Treasury holdings to almost 30%, according to Fitch. EU bank exposure reflects a low of 34.9% of total assets of $642B, down from 37.7%.

Concerns about a large-scale breakdown of the U.K. financial system increased significantly over the past few months returning to 2008 levels, reports a BoE survey. A total of 55% foresee a “high impact” occurrence within the next 6 months, up from 15% in a survey 6 months ago. Sovereigns, not banks, are now the greatest concern, unlike 2008.

Commerzbank (CRZBY.PK) shares fell 8.5% in Frankfurt after the lender stated a need for about €5B to meet new EU capital requirements. Deutsche Bank (NYSE:DB) is also slumping. The sharp midday drop has temporarily extinguished most of a good rally in the DAX.

Here’s how European banks are trading now:

  • Deutsche Bank AG (NYSE:DB): DB shares recently traded at $33.49, down $1.21, or 3.49%. Its market capitalization is $30.11 billion. They have traded in a 52-week range of $28.57 to $66.00. Volume today was 1,574,440 shares versus a 3-month average volume of 4,353,670 shares. The company’s trailing P/E is 5.28, while trailing earnings are $6.34 per share. The company pays a dividend of $0.79 per share for a dividend yield of 2.20%. About the company: Deutsche Bank AG is a global financial service provider delivering commercial, investment, private and retail banking. The Bank offers debt, foreign exchange, derivatives, commodities, money markets, repo and securitization, cash equities, research, equity prime services, loans, convertibles, advice on M&A and IPO’s, trade finance, retail banking, asset management and corporate investments. Get the most recent company news and stock data here >>
  • Credit Suisse Group (NYSE:CS): CS shares recently traded at $21.81, down $0.37, or 1.67%. Its market capitalization is $26.24 billion. They have traded in a 52-week range of $21.77 to $48.45. Volume today was 1,081,197 shares versus a 3-month average volume of 1,397,210 shares. The company’s trailing P/E is 7.87, while trailing earnings are $2.77 per share. The company pays a dividend of $1.48 per share for a dividend yield of 6.60%. About the company: Credit Suisse Group AG is an international financial services group. The Group provides investment banking, private banking, and asset management services to customers located around the world. Get the most recent company news and stock data here >>
  • Barclays PLC (NYSE:BCS): BCS shares recently traded at $9.61, down $0.45, or 4.47%. Its market capitalization is $28.68 billion. They have traded in a 52-week range of $8.38 to $21.69. Volume today was 2,417,111 shares versus a 3-month average volume of 6,253,840 shares. The company’s trailing P/E is 7.30, while trailing earnings are $1.32 per share. The company pays a dividend of $0.26 per share for a dividend yield of 2.40%. About the company: Barclays PLC offers commercial and investment banking, insurance, financial, asset management and related services. The Company’s banking subsidiaries operates branches in the United Kingdom and overseas. Get the most recent company news and stock data here >>
  • Lloyds Banking Group plc (NYSE:LYG): LYG shares recently traded at $1.40, down $0.08, or 5.41%. Its market capitalization is $24.48 billion. They have traded in a 52-week range of $1.39 to $4.48. Volume today was 2,759,642 shares versus a 3-month average volume of 4,281,710 shares. The company’s trailing earnings are $-0.64 per share. About the company: Lloyds Banking Group plc, through subsidiaries and associated companies, offers a range of banking and financial services. The Company provides retail banking, mortgages, pensions, asset management, insurance services, corporate banking, and treasury services. Get the most recent company news and stock data here >>
  • Royal Bank of Scotland Group plc (NYSE:RBS): RBS shares recently traded at $5.80, down $0.35, or 5.69%. Its market capitalization is $31.48 billion. They have traded in a 52-week range of $5.78 to $18.80. Volume today was 404,596 shares versus a 3-month average volume of 54,194 shares. The company’s trailing earnings are $-0.04 per share. About the company: Royal Bank of Scotland Group plc, through subsidiaries, accepts deposits and offers commercial banking services. The bank offers business term loans; commercial mortgages; professional practice loans; asset finance and invoice finance loans; residential mortgages; consumer loans; credit cards; financial planning services; and life, personal lines, and income protection insurance. Get the most recent company news and stock data here >>
  • UBS AG (NYSE:UBS): UBS shares recently traded at $10.93, down $0.22, or 1.97%. Its market capitalization is $40.89 billion. They have traded in a 52-week range of $10.41 to $20.08. Volume today was 1,497,569 shares versus a 3-month average volume of 6,386,760 shares. The company’s trailing P/E is 7.02, while trailing earnings are $1.56 per share. About the company: UBS AG is a wealth management, investment banking, and asset management firm. The Company provides a variety of financial services to individuals, institutions, corporations, governments, and financial intermediaries around the world. Get the most recent company news and stock data here >>
  • HSBC Holdings plc (NYSE:HBC): HBC shares recently traded at $36.86, up $0.4, or 1.1%. Its market capitalization is $132.75 billion. They have traded in a 52-week range of $35.79 to $59.14. Volume today was 3,216,344 shares versus a 3-month average volume of 3,302,820 shares. The company’s trailing P/E is 7.70, while trailing earnings are $4.79 per share. The company pays a dividend of $1.80 per share for a dividend yield of 4.70%. About the company: HSBC Holdings plc is the holding company for the HSBC Group. The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance. The Group operates worldwide. Get the most recent company news and stock data here >>

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