'European banks face collapse under debts, warns Deutsche Bank chief Josef Ackermann'

dow futures down 308 points 707pm est................ from the telegraph.......

"Mr Ackermann said that the value of billions of euros of loans has plunged to a level that could overwhelm smaller banks.

He told a conference in Frankfurt: "Numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."

Mr Ackermann said market conditions were as febrile as the height of the banking crisis. "We should resign ourselves to the fact that the 'new normality' is characterised by volatility and uncertainty," he said. "All this reminds one of the autumn of 2008".............READ MORE