CHART: Here's The Massive Deleveraging Of European Banks

From Morgan Stanley, a chart of the massive deleveraging still underway by European banks.

Due to the weak economy and demands of improving capital ratios, European banks are shedding assets aggressively.

This asset dumping, especially the dumping of foreign assets, tends to be Euro-bullish.

Thus this chart represents a pattern similar to the great decline in Japan, where ongoing deleveraging was accompanied by burdensome yen strength.