The global economy has been one victim of the recent crisis of European sovereign debt, but Europe's banking sector and the investors who have financed it will be the next. A great deal of pushing and shoving has forced European authorities to accept that there is a problem in their banking sector. Some are working hard to understand the problems and others see themselves as immune, though they probably are not; but all have been tempted to let political factors influence decisions that need to be based on sound economic and regulatory footings.

You can Bank of It - European Banks need tons of Money - GMO.pdf