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.
Europe’s biggest banks, led by Lloyds Banking Group Plc and Deutsche Bank AG, have racked up more than $77 billion in legal costs since the financial crisis, five times their combined profit last year.
Spanish defaults as a proportion of total lending climbed to a record in August as companies and consumers struggled to make loan payments in an economy with an unemployment rate that’s still above 26 percent.
Barclays Plc, the only U.K. consumer bank not to have scrapped its profitability target amid Europe’s debt crisis, will struggle to reach the goal without cutting costs as revenue from investment banking falls, analysts said.
Gabon hired Poyry Oyj , the Finnish engineering consultant, to conduct an audit of oil companies’ facilities to check their preparedness for spills, said Oil and Petroleum Minister Julien Nkoghe Bekale .
Commerzbank AG, the German bank forced into an 18.2 billion-euro ($24 billion) state bailout, jumped the most since October 2011 in Frankfurt trading after second-quarter earnings fell less than analysts estimated.