Bursting Fintech's Bubble
Banks' investments are affordable bets with limited risk.
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If you can't beat them, buy them. European banks are acquiring mobile-savvy fintech start-ups rather than building their own.
Given the long history of start-ups that have sold themselves for eye-watering valuations before crashing down to earth (case in point: Yahoo's $1 billion purchase of Tumblr1471528369732) you might be forgiven for getting twitchy about where this all might be headed. Especially given the banks' record of value-destroying takeovers. Remember RBS's record takeover of ABN Amro months before the financial crisis of 2008?