European banks are in a “very fragile situation” and are “not really investable as a sector” according to Credit Suisse chief executive Tidjane Thiam.
Speaking at a conference in London this morning,it was said that the CEO of Europe’s ‘other Deutsche Bank’ said “only a fool would try to make a five-year prediction in a world that is so random,” wishing John Cryan well, “I hope that they come out of their current predicament.”
The next nine months are going to be difficult,” Thiam began, adding that “risk is everywhere, risk is everything. I trained in maths and physics and all that teaches you is that basically the world is a big random experiment,” and Brexit was “like Russian Roulette.” Asked specifically about Deutsche Bank, he wished them luck…
“You get extreme movements on the basis of relatively minor piece of news because there’s a lot of uncertainty,” he said, citing “regulatory uncertainty” about future capital requirements and concerns about “potential fines like you’ve seen on Deutsche Bank this week”.
“I think there is also a lot of doubt, a fundamental doubt, is there a viable business model that covers its cost of equity?” Mr Thiam added.
“That’s the big big big question,” he said, describing it as something that “makes banks not really investable as a sector”.
“Deutsche Bank is an old institution, a great institution and I really wish them well, I hope that they come out of their current predicament”.