New data published by the ECB shows that two banks in the euro zone had to approach the European Central Bank for funding in dollars.
The total sum is 575 million. This isn’t huge, but it shows that the problem continues.
Jean-Pierre Chevallier reports about this phenomenon and states that this means that two European banks were actually in default. Click here to read his analysis on this event and check out his site for more on European banks.
Yesterday, an anonymous executive at PNB Paribas was quoted saying that the bank, France’s largest, doesn’t have access funding in US dollars. This was later denied by the bank.
On one hand, the saying is “don’t belive anything until it is denied”. On the other hand, it seems unlikely that this huge bank that operates in the US in a serious manner is really in this situation.
In any case, the Greek crisis is still weighing heavily on the European banking system, but at least for now, it seems that Greece will get the next tranche of aid.Get the 5 most predictable currency pairs