Citigroup's Buiter Sees 'Acute' Risk From Italian Banks

The transcript discusses the risks posed by European banks, particularly in Italy and Portugal, due to capital shortages and the slow recapitalization process. It examines the role of the European Union in this process and the challenges faced by banks in balancing profitability with capital requirements. The impact of yield curves on banks and insurance companies is also explored, highlighting differences between the US and European banking systems.

Discuss the implications of the slow recapitalization process in the European banking system.

What is the significance of the yield curve for banks and insurance companies?