According to FT, a certain large CSwiss bank is now offering its hedge fund clients a product that allows them to short European banks – even if shorting bank stocks is banned in several countries. I will not discuss the morality of this manoeuvre. Would be akin to discussing something that does not exist. Pure metaphysics!). One thing is, however, clear. Once this particular product is offered to retail investors, the European banking crisis is close to being over. Yet another of my “hillbilly indicators” based on nothing but a long memory.
RBS is caving in to demands from Bank of England and the British finance ministry (who owns a not insignificant 83% of the shares in RBS). It will mainly lead to cuts in the investment banking activities. Deutsche Bank wants to sell its asset management division. I am afraid none of it points to a solution to the banking crisis.