Summary
LONDON (IFR) - Options are rapidly running out for Europe's ailing mid-tier banks as nervous creditors pull the plug on once vital sources of funding in response to growing sovereign contagion worries, sowing the seeds of an imminent liquidity crisis at the heart of the euro zone.
With bond markets shut and investors unwilling to buy asset- backed securities, the repo market - for some banks the sole remaining source of private funding - has become the most recent tap to run dry, with some investment banks pulling credit lines worth tens of billions of euros in recent weeks.See the full content of this document
Extract
Credit Taps Run Dry for European Lenders
Bankers who once ran the now-defunct repo facilities for mid- sized European banks say the credit lines were withdrawn after risk managers became concerned about their own exposure to the enfolding sovereign debt crisis, leaving some clients now solely reliant on central banks for cash.
"Given what's going on...See the full content of this document
Sponsored links
