Posts Tagged ‘frnace’

Financial crisis taking nations under

 

Move over America the financial crisis in Europe aims at being bigger than anything Americans have faced. This crisis is about to take nations under with it.

It is not just the banks but also the countries that are about to declare bankruptcy

Kaupthing Bank hf, Landsbanki Islands hf and Glitnir are highly leveraged, like other now-troubled banks. The banks’ assets reached €100 billion, about 10 times the country’s gross domestic product last year, and their foreign depositors have come to far outnumber the island’s population.

Today, Iceland’s swollen banks are ruined. In the space of a few days, practically the government has seized the entire banking system. The largest bank of all, Kaupthing Bank, was seized Thursday, and trading was suspended on the stock exchange until Monday. The krona has ceased functioning as a currency outside Iceland.

Switzerland – the banking haven is on verge of a break down and the governement cannot rescue it. Here is why…

Switzerland’s gross domestic product totals 512 billion Swiss francs (€332.1 billion). UBS’s balance sheet adds up to 2 trillion Swiss francs (€1.3 trillion) — four times as much. Even Switzerland’s second biggest bank, Credit Suisse, oversees assets totalling 1.2 trillion Swiss francs (€778.4 billion). Together UBS and Credit Suisse have over 640 billion Swiss francs (€415.1 billion) in outstanding loans.

 

Britain is looking at a  bailout package for its banks with plenty of stings attached.

Next to go under seems to be Austria…Germany looks sold as of now but France is on very shaky grounds.

 

BBC has an excellent summary about what is happening in Europe

 

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