Italy Crisis: Could Europe’s Troubles Be a Boon for U.S. Banks?

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email
Share on print

Financial markets were roiled this week by Italian political turmoil that investors fear could lead to a European financial crisis, with Italy possibly requiring bailouts or even quitting the euro. This could spell trouble for European banks ‒ but by the same token, it could also potentially benefit U.S. banks competing for the same business.

Though banks based in Italy were hardest hit by the uncertainty, other European lenders, such as Deutsche Bank, could also be affected by the continent’s woes.

That would only add to existing problems for Deutsche Bank, including the possible layoff of 10,000 employees through 2019. Rating agencies such as Standard & Poor’s are already concerned about the German bank, and reportedly may lower their credit ratings based on the strategy announced following the appointment of new CEO Christian Sewing in April.

Sewing said Wednesday the bank is committed to its business in the U.S. even though it is cutting back. Deutsche Bank is closing its Houston office and moving away from its Wall Street location to a smaller Midtown office.

Given that Deutsche Bank is a major lender in the U.S. commercial real estate industry – and the No. 1 originator of CRE loans in New York City in 2017 – this additional uncertainty in Europe could potentially give a competitive edge to U.S. banks that compete with Deutsche and are less exposed to European volatility.

View the full CrediFi Lending Spotlight: New York City Edition to find out the biggest CRE lendersand CRE financing trends of 2017.

Deutsche Bank has exhibited a “delayed recognition of problems,” Chris Kotowski, senior analyst at New York-based investment firm Oppenheimer, told CNBC last week.

“They just seemed to value bigness over profitability for many years,” he said. “I think quite honestly that for the time being, it’s more of an opportunity for American banks than it is a risk.”

Deutsche’s biggest competitors on CRE origination in New York City include U.S. national lenders such as Wells Fargo, Morgan Stanley and JPMorgan, as well as regional lenders such as Signature Bank and New York Community Bank.

Deutsche Bank originated over $5 billion in mortgages for NYC commercial properties in 2017, a drop of 5% over the previous year. Wells Fargo was the No. 2 lender, with its origination growing 5% year-over-year.

The concerns regarding Italy are similar to those that previously surrounded Greece, which was the subject of the last Eurozone crisis and required bailouts from the International Monetary Fund and other institutions. This time the fears are compounded by the fact that Italy is the region’s third-largest economy and that European banks hold billions of euros of Italian government debt.

The political crisis revolves around the formation of a coalition, following Italian President Sergio Mattarella’s decision this week to veto the appointment of a finance minister who supports leaving the eurozone.

Some are concerned the fallout could lead to new elections just months after the previous election, in March, and that the political volatility could be a prelude to financial volatility, potentially increasing the risk that Italy will follow Britain out of the EU.

If the market reaction this week turns out to be less a blip and more a signal of serious things to come, such as an eventual “Exitaly,” U.S. lenders with limited exposure to Europe could be poised to benefit if highly exposed European competitors begin turning away from U.S. real estate.

Close Menu

Request a demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.







Request a demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.







Find out how our data can help you discover more lending opportunities.
Speak with a CredifX representative today.





INCREASE YOUR LENDING OPPORTUNITIES. SPEAK WITH A CREDIFX REPRESENTATIVE TODAY.





SUBMIT YOUR REQUEST FOR COMMERCIAL REAL ESTATE FINANCING


Find out how our data can help you discover more lending opportunities.
Speak with a CredifX representative today.





SUBMIT YOUR REQUEST FOR COMMERCIAL REAL ESTATE FINANCING





SUBMIT YOUR REQUEST FOR COMMERCIAL REAL ESTATE FINANCING


SUBMIT YOUR REQUEST FOR COMMERCIAL REAL ESTATE FINANCING


Mary Kovac Goldberg (Parrino)

Head of Customer Success

Mary has over 25 years of experience in sales and customer engagement, including more than a decade at Thomson Reuters. She is the former head of client services at Complinet, a global compliance and risk software company that was acquired by Thomson Reuters, and led account management for over 15 years at NYSE/Sector’s outsourcing services division. Mary has an MBA in information systems from Pace University and a bachelor’s of science in computer science from Hofstra University.  

David Libman

Head of Product

David Libman, a fintech and investment professional with 20 years’ experience in fields including finance, technology, new business development and real estate investments, is head of product at CrediFi. Previously, David was a vice president at New York-based iCapital Network, a financial technology platform for alternative investments, and director of acquisitions at Fieldstone Properties, a private real estate investment firm focused on investment-grade multifamily property. David is also the founder and former CEO of Globerex, the first real estate equity online marketplace.  

book your personalized
cre data consult today.

Gain access to CRE finance data.



















Request a CrediFi
demo today.

Gain access to CRE finance data.


















Request a credifi demo today.

Find out how CrediFi brings together cutting-edge technology and data science to develop the most comprehensive CRE financing database






SUBMIT YOUR REQUEST FOR COMMERCIAL REAL ESTATE FINANCING


Request a demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.







Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data.


















Request a CrediFi demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.



















Request a CrediFi demo today.

Find out how you can increase your deal flow with access to the most comprehensive CRE financing database.



















Request a CrediFi demo today.

Find out how you can spot risk early to make more informed trading decisions.



















Request a CrediFi demo today.

Find out how you can discover more lending opportunities with access to the most comprehensive CRE financing database.



















Book your personalized
CRE data consult today.

Gain access to CRE finance data.


















Request a CrediFi demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.







Request a CrediFi demo today.

Find out how you can discover more opportunities with access to the most comprehensive CRE financing database.



















Discover new opportunities.
Speak with a CredifX representative today.





Increase your lending opportunities.
Speak with a CredifX representative today.





Demo our up-to-date
ownership & contact
information.





We track finance data
on all U.S. markets.
Which market's CRE data
would you like to demo?





We track over
10,000 CRE lenders.
What data would
you like to demo?





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Find the lenders who
give you the best terms –
not just the ones you
already know.

Gain access to CRE finance data on 6M properties & 4M loans.





Secure the financing
you need.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





View Madison Realty
Capital's lending profile,
documenting recent loan,
owner and property information.





How would you like
your CRE data
delivered?





Demo our up-to-date
lender, owner & contact
information.





Demo our up-to-date loan,
ownership & contact
information.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Alex Veksler

Head of Content

Alex Veksler has 16 years of finance, data analysis and project management experience. He is a former vice president at Morgan Stanley, where he worked on product control of equity and fixed-income derivatives products as well as various projects involving finance and technology, such as revamping risk attribution and balance-sheet systems for profits and losses. Alex has previously worked at hedge funds, most recently as a director at Exigent Capital. He has a bachelor’s in computer science from Yeshiva University and an MBA from New York University.

Ely Razin

CEO

Ely Razin founded CrediFi in 2014 with Battery Ventures. A rare combination of seasoned corporate executive and technology entrepreneur, Ely previously served as global head of board governance for Thomson Reuters Accelus and head of business law for Thomson Reuters, after the software company he founded was acquired in 2004. The company, Expert Ease Software, developed AI-based software that automatically summarizes key deal terms for transactions in fields including capital markets, M&A and real estate. Ely began his career as a corporate and securities lawyer, and holds an LLB and MBA from York University.

Amichai Levy

VP R&D

Amichai Levy is the former VP of R&D at Israeli high-tech firm Payoneer, where he developed its signature cross-border payment platform and integrated it with existing bank technology. In his prior role at Ness Technologies, Amichai was a key player in developing an electronic case filing system for Israel’s courts. He has over 20 years of experience in software engineering.

David Fajgman

Head of Finance

David Fajgman brings over 14 years of financial and managerial experience to CrediFi. Prior to joining the CrediFi team, he served as finance director of Bioness Neuromodulation Ltd., which develops and manufactures medical devices involved in neurological rehabilitation. He has previously worked in multiple finance roles at Thomson Reuters and as an accounting and consulting manager at Ernst & Young, where he was responsible for a wide range of clients, including companies listed on the Nasdaq and privately held high-tech companies. David is an Israel-licensed certified public accountant and has a bachelor’s degree in business and accounting.

Liat Bar David

Head of Human Resources

Liat Bar David has over nine years of human resources experience, primarily focused on the high-tech industry. She is a former HR business partner at semiconductor solutions provider Broadcom, where she was responsible for onboarding processes, benefits, policies, training and development, performance management and employee retention. Liat holds a bachelor’s in communication and human services and a master’s in human resources and services, both from the University of Haifa.