Europe's banks face gaping capital hole says EBA

When the EBA states that many banks would have insufficient core capital under the rules that will come into force we are not surprised. As we repeatedly said, no amount of capital will ever make banks 100 percent bulletproof. One just has to make more and more pessimistic assumptions and come to the conclusion that a bank is not 'safe' enough. The only way to get the taxpayer off the hook once and for all would be the introduction of limited purpose banking as suggested by Larry Kotlikoff.