Europe's Bank Bailout Era Draws to End With States Selling.

European governments, including Greece, Ireland, Italy, the UK, and Germany, are selling their stakes in banks that they acquired during the financial crisis. Greece has been particularly successful in selling its bank holdings, earning €3.5 billion in the last year and returning the sector to private ownership. The sale of these stakes is driven by the desire to fill budget deficits and take advantage of high valuations before interest rates decrease. This process may lead to banking consolidation and reshape the industry, with some banks becoming takeover targets. The governments are unlikely to fully recoup the money spent on bailouts, but the window for disposals is currently open. The cleaning up of balance sheets and higher profits have made Greek and other southern European banks attractive to foreign investors. Italy is also benefiting from the sale of bad loans, and the government wants Banca Monte dei Paschi di Siena to play a role in domestic consolidation. Spain has seen a series of mergers as the government sells off banks and their assets that were bailed out during the real estate crash. Overall, countries that had bankrupt banking systems a decade ago are now seeing their banks regain strength and attract investors. [Extracted from the article]