Notable Quotes On The Health of European Banks in Dynasties of the Sea

The European Sovereign Debt crisis has impacted the banking system in the Eurozone, imobilizing lending, opening the door for China to step in and be lender to the sector. This emergency has Seaspan’s Gerry Wang very excited.

When I sat dow with the shipping leaders in Dynasties of the Sea I asked them their thoughts on the health of the banks as the Eurozone tries to clean up its fiscal imbalance sheets.

Here are just a few.

Below are excerpts of Dynasties which is under copyright of Marine Money International

On the state of the European banks

“We have influenza. We will get through it but it will take time. And even more important, the financial industry will be different when we get out of it. This will shake the industry and we don’t know yet how but we have seen part of the changes and I expect more will come. Consolidation is in the future.” – Kristin H. Holth, Executive Vice President at DNB Bank ASA

“…the enablers were the banks that lent money to these projects. Lord only knows why the banks did it. And the reason may be simply because people naturally project along a straight line. So if the charter rates are 100, or if you can see them going down to 90, but it’s difficult for people to envision them going down to 25. Bottom line I think people just forgot how truly volatile the shipping markets can be. And so the banks were the enablers by lending the money.” – James Tisch, Chairman and CEO of Lowes Corporation

“It’s never just one participant in the creation of a crisis. Remember there is always the person who ordered the ships. Their money’s locked in before ours. So there has to be some other realist taking a risk in the market.” she said. “Having said that, yes, there have been banks who follow and do that type of financing, but I would say comments like that are too heated to blame the banks for doing it. First there is somebody placing the order and that is the shipowners.” – Kristin H. Holth, Executive Vice President at DNB Bank ASA

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