Ian Harnett on painful times ahead for European banks

Part 2, Feb 4: Ian Harnett, managing director of Absolute Strategy Research, an independent financial consultancy, says, unlike banks in the US, those in Europe have not fully adjusted to more difficult times, particularly as the European Central Bank holds firm on interest rates. He tells Gillian Tett, global markets editor, that European banks are likely to experience "a step-change" in earnings, rather than a shock followed by a bounce-back.