Overnight stashing of $453 billion signals European troubles

[marmar]

FRANKFURT—Banks from the 17 countries that use the euro stashed €347 billion ($453 billion) overnight with the European Central Bank on Thursday, in another sign that Europe’s debt crisis is still putting pressure on the banking system despite massive central bank support.

The figure announced Friday is the highest for 2011, topping €346.4 billion earlier this month.

It’s a sign of mistrust in the interbank lending market where banks raise operating funds, suggesting they are depositing money with the central bank at low interest rates because they are afraid to lend it to other banks — for fear they won’t get paid back.

Europe is suffering from a debt crisis marked by concerns that heavily indebted governments such as Italy may be unable to pay off their bonds. That means trouble for banks because they typically hold government bonds. ................(more)

The complete piece is at: http://www.thestar.com/business/article/1106279--overnight-deposits-at-european-central-bank-hit-year-high-in-sign-of-mistrust?bn=1

[xchrom]

1. du rec. nt

[Jackpine Radical]

2. The wheels are coming off.

The greed of the banking class is far past the point where it is capable of killing off whole economic systems. I keep seeing the bank establishment as a tumor that is sucking in everything for itself, ignoring the fact that it too will perish immediately after it kills off its host. Unfortunately, the rest of us ARE that host.