by Bill McBride on 9/04/2011 09:00:00 AM
Sunday, September 04, 2011
From Kash Mansori at The Street Light: Europe's Banking System: The Transatlantic Cash Flow
And now, the flip side of the story presented [Thursday], in which ECB data seems to indicate that monetary financial institutions (MFIs) in Europe have been moving their deposits out of European banks. Where is that money going?
European banks are shifting their cash assets out of European banks and putting much of them into US banks. ... This has happened at a significant rate, with a net transatlantic flow from European to US banks that probably totals close to half a trillion dollars in just six months.
If you're wondering exactly who has been the first to lose confidence in the European banking system, look no further. It seems that at the forefront is the European banking system itself.
Posted by Bill McBride on 9/04/2011 09:00:00 AM