Panic Forces Ecb to Step in with 65bn

Daily MailAugust 10, 2007

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Summary


PANIC over America's deepening mortgage crisis forced the European Central Bank to swoop into the markets with an unprecedented injection of emergency credit.

The bank waded in with 65bn of cheap cash to prop up the financial system after it emerged that commercial lenders were frantically reining in the supply of loans, leading to spikes in interest rates and a slump in equity values.

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Extract


Panic Forces Ecb to Step in with 65bn

It was the biggest central bank intervention since the September 11 terrorist attacks....

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