European Banks Are Fleeing The United States In Droves
July 23, 2012
Since the financial crisis, European bank assets in the United States have fallen an incredible $540 billion dollars from $1.51 trillion to $973 billion.
The FT reports that a combination of write downs, sales of loans and businesses, bank failures, and higher capital ratio requirements have pushed U.S. assets held by Eurozone banks to their lowest levels since 2005.
The drop is most pronounced in countries that have suffered severe banking crises. Ireland’s banks, for example, have seen their U.S. assets decline from 130 billion in 2008 to just $3.6 billion as of March.
Benefiting from this outflow are U.S. institutions like Wells Fargo, JP Morgan, and Capital One which have bought loans and assets from struggling Eurozone bank