Europe Banks May Face $27 Billion Energy-Loan Losses (+EURO-BANKS CRUMBLING NEWS ROUND-UP)

``European banks face potential loan losses from energy firms of $27 billion, or about 6 percent of their pretax profit over three years, according to analysts at Bank of America Corp.''

There's too many articles on this topic to post separately; see below:

• What's Dragging Down European Banks: Oil And Commodity Exposure As High As 160% Of Tangible Book (ZeroHedge)
• The Market Isn't Buying That Deutsche Bank Is 'Rock Solid' (Coppola @ Forbes) (MUST-READ)
• The Walking Dead: Something is Rotten in the Banking System (Tenebrarum)

Here's a choice quote from the Coppola article:

So what will happen next? There are already rumors that Deutsche Bank will need a bail-in, which is no doubt why stock and subordinated debt prices have collapsed and CDS prices have soared. Bail-out is an alternative, given Deutsche Bank's systemic importance, though it would probably break EU state aid rules. But if the alternative were meltdown in the financial system due to the threat of bail-in for other systemically-important banks, those rules would no doubt quickly be ditched. Deutsche Bank is by no means the only European bank on a knife edge, and the Bank of Portugal's recent decision to use the BRRD to justify wiping some senior creditors in a solvent bank has fatally undermined the BRRD. The threat of invoking BRRD now would be likely to spark wholesale bank runs all over Europe.