Ten years from the global financial crisis of 2008, the links between public debt and banks still remain, Peter Wuffli, the former CEO of UBS, told CNBC on Friday.
“Looking in Europe, that’s currently the biggest risk,” he said, pointing to Italy where there is “still no risk premium on holding government bonds, for a bank.”
He said it would be “much better for the system” if bonds were not looked at as “risk free,” so institutions invested in other kinds of assets.
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