Has the Bank Run Begun in Europe?
Money-market funds [cnbc explains] in the United States have quite dramatically slammed shut their lending windows to European banks. According to the Economist, Fitch estimates U.S. money market funds have withdrawn 42 percent of their money from European banks in general.
And for France that number is even higher — 69 percent. European money-market funds are also getting in on the act.
Bond issuance by banks has seized up because buyers have gone on strike.
From the Economist's Free Exchange Blog:
In the third quarter bonds issues by European banks only reached 15 percent of the amount they raised over the same period in the past two years, reckon analysts at Citi Group. It is unlikely that European banks have sold many more bonds since.
Corporate depositors are also pulling their cash. more