Financial Times
July 24, 2011
US money market funds have sharply cut their exposure to banks in the eurozone over the past few weeks and reduced the availability of credit, even in stronger countries such as France.
The money market funds, historically crucial providers of short term financing to European banks, have withdrawn from all but extremely short-term lending as concerns about sovereign debt have mounted.
While the agreement of a second bail-out deal for Greece might ease nerves, the funds are also stockpiling cash in case US politicians fail to raise the federal debt ceiling, prompting withdrawals from investors.
One French financier said: “Up to mid-June, getting three, six or nine-month money was not that difficult.
“But now, getting one-week or one-month money is about all we can manage”.
More
No comments:
Post a Comment