Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

While U.S. banks took on lucrative risks, European banks have played it safe. Now Old World institutions are more likely to be buying.

Suddenly, stodgy banks are looking smart. And with former Wall Street giants toppling almost daily, some European banks are starting to look especially wise.

European banks are holding up pretty well amid the turmoil sweeping the industry. None of the Old World's biggest banks appears likely to fail or put itself on the block, analysts say. Indeed, the Europeans are more likely to be buying: London-based Barclays on Sept. 17 inked a $1.75 billion cash deal to buy the investment banking and trading businesses of bankrupt Lehman Brothers.

Another London-based bank, HSBC Holdings, has been mentioned as a potential buyer for crisis-racked Morgan Stanley, though HSBC won't comment.