Developed Europe: Economic Review 3rd Quarter 2012
Perspectives Content Submission
Tue, 6 Nov 2012
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Although European banks are trying to build a large buffer against continental turmoil, the risks are still there, according to Morningstar's Erin Davis.
Germany is hitting negative sovereign yields, while Spanish regions and banks seek financial assistance from their parent country, which needs a bailout of its own.
Concerns over Greek government turmoil, Italian debt, the ECB's mandate, and the sturdiness of the EFSF are complicating plans for a bailout, says Morningstar markets editor Jeremy Glaser.