Eurozone banking system hit hard by UK referendum - BBH

Research Team at BBH, notes that the UK referendum hit an already vulnerable banking system in the Eurozone. 

Key Quotes

“Italian banks are on the front burner, but the temperature is rising in Portugal, and this is not to mention the slow boil at some of the largest European banks, specifically singled out by the IMF as posing the greatest systemic risks.

Politics add an additional wrinkle.  Both of the two main parties in the UK are divided.  The leader of the UK's Independent Party resigned.   If Labour was not doing a fine job of destroying itself, Cameron (among his last acts as Prime Minister) will give it a helping hand.  He will have parliament vote on the renewal of the UK nuclear deterrent (Trident), and it will further split Labour.  Corbyn has been long opposed, while the Labour MPs typically favor it.  There is an attempt by the Labour MPs to block Corbyn's name from even appearing on the leadership ballot.”