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Europe’s U.S.-Style Superbank Dream Is Further Out of Reach

  • Slumping cross-border loans show fragmentation getting worse
  • Diverging borrowing costs also expose integration failure
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The solution for Europe’s struggling banks, many of their CEOs agree, is consolidation that creates cross-continent superbanks -- an American-style fix that by several measures is slipping further out of reach.

Europe’s banking system is getting more fragmented, not less, 10 years after a sovereign debt crisis shook its foundations. While politicians accept some domestic mergers, they’ve resisted the idea of larger tie-ups.