Two major banks in Europe look to regulators to stem contagion risk
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“At least two major banks in Europe are examining scenarios of contagion in the region’s banking sector and are looking to the Federal Reserve and the ECB for stronger signals of support,” two senior executives close to the discussions told Reuters.
“The fallout from the crisis of confidence in Credit Suisse Group AG and the failure of two U.S. banks could ripple through the financial system next week, the two executives separately told Reuters on Sunday,” reported Reuters.
The news also quotes the two anonymous people saying that the two banks have held their internal deliberations on how soon the European Central Bank should weigh in to highlight banks’ resilience, specifically their capital and liquidity positions, per Reuters.
The news joins the pre-Fed anxiety to tame the market’s risk-on mood, which in turn allows the risk-barometer pair AUD/USD to grind higher past 0.6700, around 0.6715 by the press time.
Also read: AUD/USD grinds higher past 0.6700 on Credit Suisse news, comments from RBA’s Kent, Fed eyed
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