Small is vulnerable

Europe’s smaller banks may be more welcoming the next time a wealthy suitor comes knocking. It was easy for many of them to remain independent in the good times, when they were making good profits from easy money. But if the storm of the credit markets continues for too long, they might be more appreciative of a sugar daddy. It’s a particular issue for lenders with direct exposure to the toxic US subprime assets at the epicentre of the storm. And some of these banks have already sought refuge. G...