But for the moment it is too early to say

European banks live their worst financial crisis. Chahutées as ever on the stock exchange, pressed by regulators, short of liquidity, in need of capital, many of them see arrive with relief rescue plans announced one by one by European governments.

Commerzbank: uncertainties regarding the subsidiary Eurohypo

German Commerzbank was very attacked on the stock market these days, up to the European Central Bank decision to lower its rates yesterday (see page 2). The title of the second German Bank has completed several times on cuts to two figures in the Frankfurt Boursede. Investors fear that its subsidiary, Eurohypo, specializing in real estate financing, suffer the same fate as its competitor Hypo Real Estate. "Many investors react so nervous at the moment," says Boris Boehm, Manager of funds in Aramea Asset Management, cited by Reuters. Commerzbank could have problems toxic investments of Dresdner Bank or exposure to the secured obligations of Eurohypo. But for the moment, it is too early to say. "Merck Finck analysts, Eurohypo situation differs from that of Hypo Real Estate because its activities are more diverse and has deposits of Commerzbank to to refinance. On a background of rumours of a cancellation of the acquisition of Dresdner Bank, "Coba" and the German insurer Allianz reiterated that the transaction was well on track.

The Spain on the road to banking concentration

If the objective of the plan Zapatero (see page 4) is not to rescue banks and Spanish savings banks who, according to the official speech, did not need because their situation is healthy, the creation of a support fund for an amount between 30 and 50 billion euros represents a bowl of invaluable air for the interested, in need of cash for some time. First, the money will go directly to their funds and allow them to reconnect with credit activities, almost at a standstill since a few weeks. Some observers are not noted that the sum of EUR 50 billion referred to by the head of the Spanish Government more or less matches the funding needs of the sector for the last quarter of the year and the first months of 2009. But the plan will not be enough to prevent a restructuring of the sector banking "inevitable" , according to Miguel Angel Fernandez Ordoñez, the Governor of the Bank of Spain. Speaking Tuesday before Parliament, he explained that the rampant increase in unpaid and the fall of the external financing whose country is very dependent on would inevitably lead to a fall in activity, so levels. Behind Banco Santander and BBVA, its two champions, the Spanish finance has a small dozen of medium-sized banks and 45 savings ranging from heavy weights as the Catalan Caixa and Caja Madrid with "small electric" such as Caja de Avila or Caja de Jaén.

Banca Monte dei Paschi di Siena paid dear Antonveneta

See where are the banks Fortis and Royal Bank of Scotland (RBS), which resumed in the taken strong Dutch ABN AMRO last year, is entitled to ask the same question for Italian Banca Monte dei Paschi di Siena (BMPS), which did not hesitate to pay EUR 9 billion, end of 2007, to return to the Italian network of Banca Antonveneta to Spanish Santander and thus climb to third place in the country. But the oldest transalpine Bank has hardly suffered scattered attacks on the stock exchange. It is, admittedly, used to reduce its costs by selling assets, allowing him to identify significant capital gains. And it must still give agencies to comply with the requirements of the Antitrust. In addition, the activities of Banca Antonveneta are located agencies, for the most part, in the North of the Italy, so safe assets. Result: the Bank recorded an increase of 28 of its profits to 322 million euros, in the first half of 2008. Despite the current crisis on the markets, Giuseppe Mussari, the President of the Bank, confirmed Tuesday the objectives of its establishment in late 2008. The situation nevertheless requires the banks to review the relationship between debt and capital, he noted. Namely to lend more selectively and increase own funds. Its Tier-1 ratio amounted to 5.1 end of June.

UniCredit sentence to get rid of the distrust of investors

Nothing: despite the increase in capital in the amount of $ 6.6 billion of euros which was announced on Sunday night, despite the support of foundations shareholders to plan and despite the almost full convertible issuing undergoes UniCredit subscription, day after day, a descent to the underworld at the Milan Stock Exchange. Yesterday in London, at the Merrill Lynch Conference, Director of the Bank, Alessandro Profumo, stated that, with hindsight, he would have made the increase of capital at the beginning of the year 2008. "I would have a different heritage strength", he commented, before regret for having used the capital "to carry out operations with prices at the top of the cycle. But no one is doubted, even earlier this year, that "the cycle would change quickly.

Indeed, UniCredit pays dearly two characteristics: the first is to be the most international of the Italian banks, with a strong presence in Germany, where it acquired HBV in 2005, Austria and Poland; the second is making a takeover bid too with Capitalia last year. A decision which made the Bank a European colossus but at the cost of leveraging now considered inappropriate. Today, before capital increase, its ratio Core Tier-1 rises to 5.7. After announced operations, it will however be 6.7. The Milanese Bank confirmed yesterday the reduction of staff in its investment bank, where about 700 posts will be deleted on 3,500. An amount of EUR 700 million savings that have already been announced in the strategic plan of the month of June will add a new $ 300 million. "The speed of response is crucial," said Alessandro Profumo.