Cost to Insure European Banks Soars |
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May 7, 2010
The European bank crisis hit fresh heights on Friday as the cost to insure eurozone financials against default increased to levels last seen since the collapse of Lehman Brothers in September 2008.
The European bank crisis hit fresh heights on Friday as the cost to insure eurozone financials against default increased to levels last seen since the collapse of Lehman Brothers in September 2008.
Financial bank stocks also fell amid rising concerns over sovereign debt and the difficulty for banks in obtaining funding in the interbank lending markets.
Investors said the jump in Markit’s iTraxx financial index of credit default swaps on 25 banks and insurers by as much as 40 basis points to an intraday high of 223bp was a powerful indicator of the growing problems for the banks.
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