The Coming Banking Crisis (it could be worse than todays’s)
Posted on: Dec 7th, 2009 | By David Stevenson | Filed under Featured, Financial News
David Stevenson, Associate Editor at MoneyWeek, UK, offers his analysis of the current state of British Banks and the implications for the global economy for the next few years.
David Stevenson (MoneyWeek, UK):
It’s not been a great week for British bankers.
There’s the ongoing spat between RBS and HM Government over how much the former’s heavy hitters can pay themselves in bonuses. Then there’s the embarrassing yet somehow inevitable revelation that our banks are the ones most exposed to Dubai – with RBS top of the pile, naturally.
Meanwhile, French President Nicolas Sarkozy has been unable to disguise his glee that Europe’s new finance minister is a Frenchman, who he clearly believes will take the City down a peg or two.
But these are just niggles compared to the real dangers the banking system faces.
The cheap money that the UK’s lenders have been enjoying is about to dry up, for one thing. But worse still, while central banks have been flooding the world with money, a dangerous imbalance has been building up in the banking sector…
Click here for the rest of Mr. Stevenson’s insightful article at MoneyWeek, UK.
David Stevenson joined MoneyWeek as Associate Editor in May 2008. Having started a career in the City with Morgan Grenfell, David joined Oppenheimer as a fund manager in 1983, starting on the UK desk before managing the European fund in 1986. He has subsequently managed equity portfolios for Hill Samuel, Cigna and Lloyds TSB subsidiary IAI International, and has worked as an analyst for stockbroker BNP Securities. After a brief period running his own business, David then returned to the financial world in 2007 as investment writer for the Motley Fool. 