European Bank Bailouts Sends the Euro and Pound Plunging
September 29, 2008
As of 8:30am ET, the Euro has dropped as much as 300 pips against the US dollar while the British pound has dropped more than 400 pips intraday. A bunch of European banks have gone belly up, proving that they too are not immune to the banking sector troubles. At a time when the US has found a solution, the new problems in Europe are a glaring contrast. Will the ECB have to act this week? (more to come later):
Belgium: Fortis bailed out on cooperative effort of Belgium, Netherlands and Luxembourg governments
Germany: Hypo Real Estate bailed out by German goverment
UK: Bradford & Bingley nationalized by UK government
Iceland: Glitner Bank receiving government assistance
Italy: Unicredito shares suspended, limit down
Posted in Bank of England, British Pound, ECB, eur/usd, euro
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September 29th, 2008 at 10:41 am
[...] and British pound indicate that the concerns for those currency pairs now shift to the prospect of further bank failures in Europe. In the Eurozone, Fortis was bailed out by Belgium, the Netherlands and the Luxembourg governments [...]