FT.com: Bank shares plummet in Europe (September 15 2008)
The European Central Bank announced emergency steps to counter is financial turmoil in the wake of the crisis in the US banking system. It announced a special operation offering unlimited overnight liquidity to markets. Earlier, using language similar to that it has used previously used to signal possible intervention in financial markets, the Frankfurt-based institution said it "continues to closely monitor the conditions in the euro area money market". ... The Federal Reserve agreed to take equities as collateral for emergency loans for the first time ever, as the chances of a rate cut at its scheduled meeting this week grew according to interest rate futures trading.
Earlier, using language similar to that it has used previously used to signal possible intervention in financial markets, the Frankfurt-based institution said it "continues to closely monitor the conditions in the euro area money market".
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The Federal Reserve agreed to take equities as collateral for emergency loans for the first time ever, as the chances of a rate cut at its scheduled meeting this week grew according to interest rate futures trading.
Looking ahead, Goldman Sachs and Morgan Stanley are due to report third quarter results this week. Analysts at SocGen said: "Their earnings should represent a relatively easier barrier for the market to overcome, but we will then be in a vacuum of sorts as far as single names are concerned given that the full reporting season is still some four weeks away."
Banking stocks fell across Europe on Monday after the dramatic overnight news of Lehman Brothers' bankruptcy and Bank of America's $50bn takeover of Merrill Lynch. ... "Black Monday? Try Blacker Than a Dark Cellar at Midnight Monday," said Mark Priest, senior trader at ETX Capital. "Bear Stearns has gone, Lehman's gone, Merrill's gone - it's carnage. People are worried about what will emerge when Lehman Brothers unravels itself, and the ripple effects that that could cause. It looks like people have moved their money back into commodities - gold and silver are up, but otherwise there are few safe havens."
"Black Monday? Try Blacker Than a Dark Cellar at Midnight Monday," said Mark Priest, senior trader at ETX Capital.
"Bear Stearns has gone, Lehman's gone, Merrill's gone - it's carnage. People are worried about what will emerge when Lehman Brothers unravels itself, and the ripple effects that that could cause. It looks like people have moved their money back into commodities - gold and silver are up, but otherwise there are few safe havens."
