SITE NOTICE | MORE..Celebrating Our 100th PowerClip! Wow! We just completed our 100th PowerClip on the site! PowerClips are short, powerful, animated videos of a sermon clip creatively styled in kinetic type. .. click for more info!
Where now for European banks? Sir Howard Davies, former chairman of Britain's Financial Services Authority, said on BBC Radio's Today programme on Tuesday morning that he thought the French government was only days away from having to recapitalise the country's banking system for a second time. It's hard to disagree.
The panic seems to have been temporarily stemmed by a statement from BNP Paribas to the effect that it wasn't having the problems widely reported of finding dollar funding. There was also an emphatic denial of discussions over state intervention. But no-one is kidding themselves. Italy had to pay the highest spread since joining the euro to sell its bonds on Tuesday. There are growing fears over whether Europe's largest borrower can stay the course.
The eurozone sovereign debt crisis is meanwhile exacting a devastating toll on the European banking system as a whole, the UK included....