Deutsche Bank: European Banks Face Collapse Under Debts

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Deutsche Bank chief Josef Ackerman warned at a conference in Frankfurt that smaller European banks were in trouble due to volatile and unfavorable market conditions. Ackerman warned about the limited prospects for financial recovery, and the additional problems created due to the uncertainty of the US regulatory reform.

Chrisine Lagarde, the head of IMF has called on for a recapitalization of European banks to make them stronger in the face of a weak economy. Ackerman disagrees with the approach as he said it shows politician lack belief in their own policies.