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A new disaster is coming in EU banking sector, whom to blame, big Audit firms!

First I was thinking what should be the title of this posting? Will it be good if I write that big audit firms set the time for EU bank collapse!
If someone is thinking that financial crisis is over then think twice because the coming EU banking crisis is no way less than 2008 financial crisis. The time bomb will explode at some point of time in future, the time has not yet set for it. In that tsunami, forget about the smaller if any major banks collapse then I will not be surprise.

Somewhere I read that EU member states spent around $800 billion on different bail-out packages for many EU banks from 2008-2015. They are following quite similar step that was in the other side of the Atlantic. But I do not think that in US they completely depend on big audit companies for this bail-out. These audit firms were engaged in designing the most important bail-out packages. Now what will happen if those bail-out packages do not work? There is no protection clause or insurance coverage by which these firms will have to share the losses if that bail-out packages do not work.

What is wrong with these firms & their professional approach! Their assessments on EU banks do not work yet there is no change in their fate, they are getting newer contracts. What should I consider that they are toying with taxpayer’s money & they are misguiding investors, authorities? Or there are some under table agreements with these audit firms & some EU financial authorities?

Banks of some PIIGS nations are in difficult situation. Few weeks ago there was some news about Deutsche bank, even if that time that news did not exploded but what will its guarantee in future? After the upcoming rate hike or hikes in US there are not much events, at least I am not seeing. In that case as a trader in the financial market I think this EU banking crisis may work as good trigger for market.

NOTE:  Please see the disclaimer of this blog.


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