European Banks Face Financial Crisis 2.0, Shares Hit 1988 Lows

by Wolf Richter
Wolf Street

The ECB promised “to monitor markets closely.” Then it came out with a new bond buying binge.

Bank stocks in Europe plumbed fresh mutli-decade lows despite the release of a hurriedly improvised one-paragraph announcement by the ECB pledging to do just about whatever it could take to keep the banking system in tact. The ECB will continue “to monitor markets closely”, the message read, and is “ready to adjust all of its measures, as appropriate, should this be needed to safeguard liquidity conditions in the banking system.” In other words, the ECB is willing to throw what remains of the kitchen sink at the problem.

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