Governance

Within the large investment banks, special teams consisting of 10 to 30 people have been assembled in order to develop rescue kits designed to face all types of scenarios resulting from a breakup of the Eurozone.

The layoffs have unquestionably impacted the personnel of the French banks but a greater malaise reigns. A top ranked outgoing senior executive considers the current situation as symbolizing an unprecedented weakening of French banks…

According to Jeremy Bell, business lawyer and associate at Ashurst in London, some firms are making sure that their euro deposits are in bank accounts located in strong Eurozone countries instead of accounts in weak ones.

Even in the seemingly unlikely case that a comprehensive solution to the sovereign crisis is found, the changed regulatory backdrop is a major challenge for the banks, and probably for the economy as a whole.

As China faces up to its debt problems investors should be poised for turbulence and opportunity, writes Robin Parbrook, Head of Asia (ex Japan) Equities.