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Europe Bank Selloff Deepens as Traders Locked in `No Man's Land'

  • Europe banks more than 40 percent cheaper than broader market
  • Technical measure called RSI below even crisis levels
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What's the Heart of the Problem in European Banks?

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It’s been a bad seven weeks for European banks -- worse even than during the 2008 financial crisis, by one measure.

Societe Generale SA was the latest on Thursday to report earnings that missed estimates, tumbling the most since 2011 and dragging the whole sector down. Credit Suisse Group AG joined Deutsche Bank AG and Italian and Greek counterparts trading at or near record lows. A technical measure of market momentum has shown market stress more times than even during the latter part of 2008.