Is Eurozone banks about to experience the worst economic crises? top bankers in Wall Street sends warning messages Eurozone

Is Europe about to experience the biggest ever economic problem? some Wall Street's bankers have expressed their fears on what might hit the economy of eurozone.

US and Switzerland financial heavyweights have joined forces to sound the alarm over Deutsche Bank and its peers.

Goldman Sachs' president Gary Cohn lashed out at eurozone banks for not cleaning-up their balance sheets after the financial crisis.

Speaking at the Institute of International Finance, the chief said the US banking sector was "in the best shape ever," Financial Times reported.

Goldman Sach

Adding he said: "Other (parts of the world) provided cheap financing to their banks to allow them to earn their way out of the crisis and hoped that asset prices would recover.

"What we are seeing today is that approach isn’t necessarily working."

At the same conference, Sergio Ermotti, chief executive of UBS, said: "Europe is in a huge overcapacity situation, with a combination of private sector and public sector banks and quasi-public sector banks that have been allowed to compete."

Mr Nigel Vooght added by saying: "Banks need to wake up and start to react, because they are an integral part of society, but they don’t have a divine right to be here. All the banks are trying to switch from an interest rate-based model to a fee-based model."

Last week the International Monetary Fund said the European banking sector, particularly Deutsche Bank, was a risk to the world banking system.