US banks are currently hot political capital following Wells Fargo fiasco of last week and Yellen was poor today under extremely hostile questioning concerning the politicisation of the fed. Many speakers raising the issue of WF e.g. being "too big to fail". QED it is too big, therefore should be broken up. In Europe Draghi says there should be consolidation of European Banks i.e. make the banks bigger..... Merkel has had a year too forget and now is faced with the potential of DB having to resort to some sort of Government bail out, however it is dressed up - serious mea culpa Because everyone today (Fed especially) are all data led the CB's are always behind the curve and they react too late. They are now getting the message that low interest protects the economy but kills the banks and if they kill the banks then the whole pack of cards falls. In this confusing environment why would anyone want to be a shareholder in a bank - CB's have nothing left, politicians are slow and reluctant to do anything truly stimulating to the economy in case it fails and so we trundle on celebrating that the share price has gone up on 2 consecutive days to 55p - that's half a Guinea a share - making a market cap of just below £40 billion. OPEC have this evening caused a stir this evening starting to cut production because they are now really hurting from the low oil price, let us hope CB's and politicians have realised that these prolonged low interest rates hurt the banks so much that they jeopardise the whole pack of cards.
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