Euro money rate has biggest drop in 5 1/2 years on bank rescues
Bloomberg.com reports the cost of borrowing in euros for three months fell the most in 5 1/2 years after the U.S. joined the U.K., Germany and France in offering to buy stakes in banks to restore confidence in global financial markets. The euro interbank offered rate, or Euribor, that banks charge each other for such loans slid 8 basis points to 5.24% today, according to the European Banking Federation. That's the biggest drop since Feb. 24, 2003. The comparable dollar price will fall about 15 basis points to 4.60%, said David Buik, a market analyst at BGC Partners in London. The U.S. will invest about $125 bln in nine of the biggest banks, including Citigroup (C) and Goldman Sachs Group (GS), in exchange for preferred shares, said people briefed on the plan. The measure follows similar moves by European leaders to unlock credit markets by helping beleaguered banks.
Posted:
10/14/2008 8:26:56 AM by
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