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Exam 2 articles - Europe Races to Stem Crisis 10/5/11...

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Europe Races to Stem Crisis 10/5/11 -large bank, Dexia SA, on the verge of government breakup. Spent past 3 years trying to undo a decade of over-zealous lending to gov’ts. -Dexia’s troubles have lifted borrowing costs for many U.S. cities and town who had received cheap financing from Dexia -Drexia agreed to “backstop,” or purchase unsold bonds in the $29 trillion municipal-debt market… interest rates on those variable-rate bonds fluctuate through daily or weekly sales called remarketings, in which big investors can either roll over their holdings at the market rates or opt out. -Italian debt downgraded three notches by Moody’s -“Europe’s interlocking sovereign debt and banking crises are feeding into one another” -Banks are loaded up with sovereign debt and look to financing from governments FDIC’s Latest Closings: Its Own Offices 10/2/11 -FDIC will close 2 out of 3 temporary field offices it set up to handle increased bank failures -1,000 US banks disappeared since end of 2007 in failures (less) and M&A (mostly)
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This note was uploaded on 12/10/2011 for the course FIN 408 taught by Professor Staff during the Fall '11 term at Miami University.

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