Since the beginning of the banking crisis in the United States and in Europe, all bank shares have fallen considerably. Analysts at Natixis seek to determine whether or not the decline in bank share prices in the US and the Eurozone is rational.

Is the decline in bank share prices rational? 

“Banks in the US and the Eurozone are benefiting from higher interest rates.”

“US banks, especially unregulated banks, regional banks, are incurring significant losses on bond portfolios.”

“Interconnection between banks in the money market is weak.”

“All things considered, the large US and European banks look solid.”