From The Guardian UK: http://www.guardian.co.uk/business/2011/nov/22/financial-fears-post-lehmans-high
Concerns over eurozone breakup or bank failure are at their highest level in the City since the collapse of Lehman Brothers in 2008, the Bank of England has found
America announced stress tests for six big banks amid fears that the eurozone crisis had made the UK's financial system more vulnerable to a major shock than at any time since Lehman Brothers collapsed in 2008.
Shortly after a Bank of England survey showed that the sovereign debt crisis in the eurozone was at the top of the worry list of major City firms, the US Federal Reserve said Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo would be tested for a global market shock. This test will be based on price and interest rate movements similar to those in 2008, and also on "additional stresses related to the ongoing situation in Europe".
As bank shares fell sharply in London and across the eurozone amid anxiety that Germany's second biggest bank, Commerzbank, could need an emergency capital injection, the Bank of England also revealed that confidence in the health of the UK financial system had fallen sharply to its lowest level for two years.
The perception that there could be a "high impact" event in the next year – such as the collapse of the euro – has increased in the last six months and anxiety has reached its highest level since the survey began in July 2008.
Publishing its twice-yearly systemic risk survey, the Bank said its new financial policy committee (FPC), set up to identify risks in the financial system, would scrutinise the findings at its meeting on Wednesday.
Continue reading at: http://www.guardian.co.uk/business/2011/nov/22/financial-fears-post-lehmans-high
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