Could European Regulation Backfire? Georges Ugeux February 26, 2015 Source:

Overbanked Europe Size of EU, US and Japanese Banking Sectors (2010) 2

European Bank Balance Sheets Show Regression Of Loans Money, Banking and Other Financial Corporations 3

US Commercial Banks Balance Sheet Assets and Liabilities of Commercial Banks in the United States 4

Total Assets of G4 Central Banks Central Bank Assets as a Percentage of GDP 5

Total Assets of G4 Central Banks Exploding of Central Bank Assets 6

Feb and ECB Balance Sheet Projections 7

As A Solution: The Co-Co Bonds 8

The Complexity of Decision Process 9

Lots of Regulations Even for the Retail Banking Three Levels of Regulations Will Affect Retail Banking 10

Shadow Banking STRICTLY PRIVATE AND CONFIDENTIAL 11

A Specific Case: Greece 12

G3: 10 - Year Government Bond Yields 13

The European Quantitative Easing Eurosystem TARGET2 Balances 14

Short Supply Highly rated debt is scarce as the ECB prepares to begin its 60 billion Euro monthly bond-purchase program 15

Conclusion STRICTLY PRIVATE AND CONFIDENTIAL 16

Georges Ugeux Chairman & CEO +1 212.332.6044 Thank You Contact Information Galileo Global Advisors, LLC Ten Rockefeller Plaza, Suite 1001 New York, NY 10020 Phone: +1 212 332 6055 Fax: +1 212 332 6033 www.galileoadvisors.com STRICTLY PRIVATE AND CONFIDENTIAL Georges Ugeux Chairman & CEO +1 212.332.6044 gugeux@galileoadvisors.com 17