European Banks Should Keep Dumping Italy Bonds, Clausen Says

Europe’s banks need to keep dumping Italian bonds and other assets tainted by the region’s debt woes to avoid being sucked into the epicenter of the crisis, said Christian Clausen, president of the European Banking Federation.

“The banks are doing exactly what they should be doing: they are reducing their risk toward this event. We can see that clearly as now Italian bonds are being sold off,” Clausen, who is also the chief executive officer of Nordea Bank AB, said in an interview in Stockholm. “They should keep doing what they are doing. The banks are actually moving out of the epicenter.”