Banking shares fall across Europe (BBC)

[katty]

more: http://news.bbc.co.uk/2/hi/business/6998620.stm

Banking shares fall across Europe

Banks in the eurozone get access to cash from the ECB
Banking shares have been falling across Europe as savers continue to withdraw money from the troubled British bank Northern Rock.
The firm's boss told the Independent newspaper that three unnamed Spanish banks had sought help from the European Central Bank (ECB).

Although the ECB denied any Spanish banks had used emergency financing facilities, their shares were hit.

French and Italian banks were also hit on fears of financial woes spreading.

Banks in the eurozone are entitled to use the ECB's routine liquidity facilities, but the ECB stresses that using that does not suggest they are in difficulties.

No other bank matched the falls in Northern Rock shares, which plunged 35% by the end of trading in London.

[cliss]

1. Scared. They are white-knuckling it right now.

Look at this quote, "but the ECB stresses that using it does not suggest they are in difficulties".
This sounds very similar to a spokesman for Northern Rock this week who came out and said, "the bank is doing just fine. We have lots of money, we have billions of pounds at our disposal".
Meanwhile, people are pulling out their deposits.
This whole thing is becoming a self fulfilling prophecy. Fear = bank run = bank wobbles = lack of faith = bank goes belly-up.

[katty]

2. yes, indeed