[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Kerald_%28Meister_des_Codex_Egberti%29_001.jpg”]
Europe has been getting hammered on account of a major sell-off in European banks.Markets went into overdrive after it emerged that the European Central Bank had given out dollar loans to eurozone banks for the first time since February.
An unnamed bidder borrowed $500 million for a week because it had difficulties getting the dollar funds it needed, according to CNBC. While analysts say the use of this largely unused facility in isolation wouldn’t have been worrying, concerns grew over European bank financing. Moreover, when the ECB had last made a dollar loan in February it had been a significantly smaller $70 million loan.
Meanwhile, The New York Federal Reserve has held regular meetings with European banks to ensure that they have enough cash and short-term funding at their U.S. units, amidst the debt crisis roiling Europe.
Earlier we looked at how the sell-off of financial stocks was dragging down European markets. For now, France is down 2.97%, Germany is off 3.54% and Italy is down 3.8%. Here’s how some of their biggest banks are looking now:
- Societe Generale — -6.98%
- Credit Agricole — -4.09%
- BNP Paribas — -3.94%
- UniCredit SpA — -4.75%
- Intesa Sanpaolo — -6.83%
- UBI Banca — -4.85%
- Commerzbank AG — -5.75%
- Deutsche Bank AG — -4.66%