 Markets have been rising sharply yesterday, the price of gold went down as investors started to speculate that central banks all around the globe will start to intervene in a concerted effort to restore market confidence. But first and foremost, they are not able to solve the complicated political problems that need to be addressed. But at least they can stop the landslide in banking stocks which creates a somewhat queasy and uneasy feeling amongst all investors. Mario Draghi yesterday warned that the Brexit referendum and the exit of the UK out of the EU could cut Euro GDP by as much as half a percentage point. The GDP reductions could last three years, there could be competitive FX devaluations and it would be about time to address bank vulnerabilities. Although there is now cash on the sidelines when you look at the investment funds, the current environment of heightened uncertainty gives rise to a buyer strike as investors wait for a sufficient value cushion that is lower at equity prices to open up before deploying precious try powder. Trading volumes and trading activity though has been exploding in the last days since the referendum results were published. And if you take a look at the sharp drop in US and German government bond yields since last Thursday, you can see that many funds and investors might be increasing their cash levels and flee into perceived safe havens. In the end it won't be possible for the ECB to solve the complete systemic risk which is rising out there. A systemic risk consists of a liquidity component and a solvency component. The ECB could surely solve any liquidity issues that might arise but they are not able to address solvency problems of banks unable to earn anything in their traditional business when yields are negative. Some banks are stuck in what has come to be known on Wall Street as the value of death or the killing fields. Those banks have the cost of a scale player and the revenues of a niche firm. There are pretty much all European banks on that list, Barclays, Credit Suisse, Societé Chénaral, BNP Paribat or Chebanken, HSBC all find themselves in a tough spot. As Bank of America notes, for this group of banks, estimated costs are probably at least 20 to 40% too high so more cost cutting is coming or might be coming at least. Who profits will be the niche players like the Swiss UBS which scale down investment banking drastically and who will also profit are the large banks of scale and there are JPMog and Goldman Sachs and Citigroup so virtually the big US banks on that list. So in the end what could result out of the turmoil that is out there in the markets is that the European banking stocks and banks will lose market share and who wins will be the big players in the US.