European stress tests are likely to be “underwhelming” because they may require banks to raise less than half the 75 billion euros ($97 billion) of fresh capital needed, according to Nomura Holdings Inc. analysts.
“Cascading default, bank runs and catastrophic risk” lie ahead for the world economy unless Europe resolves its festering debt crisis, Timothy F. Geithner told global finance chiefs on the morning of Sept. 24.
The European Central Bank’s willingness to let lenders fail will depend on the funds available to wind them down, analysts said, after the new head of banking supervision said some should go out of business.
When Juergen Fitschen and Anshu Jain take over as co-chief executive officers of Deutsche Bank AG this week they’ll be reviving a tradition of dual leadership at Europe’s largest bank that ran from the 1960s to the 1980s.
Deutsche Bank AG, continental Europe’s biggest bank, is drawing the most recommendations to buy its shares in six years after a 3 billion-euro ($3.9 billion) capital increase eased concern over its finances.