Wednesday, October 5, 2011
Ripples of the impending crisis reach our shores
"A huge rescue operation looks imminent for the Franco-Belgian bank Dexia SA, after France's finance minister indicated that a partial solution to save the bank could be announced soon". "Banks face a 148 billion euro capital shortfall under a base case and a 227 billion shortfall under a stressed scenario, according to analysts at JPMorgan, who say Unicredit , Deutsche Bank, Lloyds, Societe Generale and Barclays each face a deficit of over seven billion euros under its stressed scenario, the Reuters news agency reported". Merkel said, "if a given country cannot (recapitalise) and if the stability of the euro is in jeopardy because of the difficulties in that country, then the possibility of the EFSF can be used," she said, referring to the euro zone's rescue fund.