Tom Keene Talks to Chris Whalen
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Do the challenges in Europe have a knock-on effect on U.S. banks?
Oh, yes, very much. They've really decapitalized much of the banking system in Europe. You're talking about government-supported banks with almost no private-sector capital, really, in these areas. It's still too dangerous to play there. You don't see entrepreneurs starting new banks in the U.K.
What banks in Europe could be affected negatively?
The state sector is either going to support the banks in the case of France and Germany, or in the case of Ireland and the U.K., they may actually restructure and take apart these banks and then try and entice private equity to come in and help them.