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Trichet Says Risk Signals Are Flashing Red as Debt Crisis Threatens Banks - Bloomberg
European Central Bank President Jean-Claude Trichet said risk signals for financial stability in the euro area are flashing “red” as the debt crisis threatens to infect banks.

“On a personal basis I would say ‘yes, it is red’,” Trichet said late yesterday in Frankfurt after a meeting of the European Systemic Risk Board, referring to the group’s planned “dashboard” to monitor risks. “The message of the board is that” the link between debt problems and banks “is the most serious threat to financial stability in the European Union.”

BNP Paribas (BNP) SA, France’s biggest bank, and rivals Societe Generale (GLE) SA and Credit Agricole SA (ACA) may have their credit ratings cut by Moody’s Investors Service because of their Greek investments, the ratings company said on June 15. German banks could also be at risk from contagion, Fitch said last month.
PIIGS  sovereign  debt  trichet  ECB  ESRB  contagion  bank  solvency  capital  2011  exposure  libor  Greece  default  complexity  credit  creditcrunch  liquidity  interbank 
june 2011 by asterisk2a

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