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European banks also have pared back lending, as they try to improve their overstretched balance sheets.
They'll pull back lending to U.S. banks and then they'd be in worse shape".
As a result, he says, they have already begun to raise standards and cut back lending.
Banks have become increasingly reliant on savings deposits to back lending.
As a consequence, they scaled back lending to corporate clients (including those overseas), which quickly felt the pain.
These critics assumed that the main thing holding back lending and investment was caution on the part of the banks.
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Such a chain of back-to-back lending, advisers from PwC argued, effectively meant Shire's intra-group loans were only passing through Luxembourg.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com