FRANKFURT — European banks have grown nervous about each other’s creditworthiness, evoking memories of the mistrust that prevailed during the dark days of 2008. The European institutions are better equipped in the event of a crisis than they were in 2008, according to analysts. But some still doubt that thisRead More →

Standard banking practice was for these banks to post as collateral their home market government bonds, which were once considered liquid, risk-free investments – much like US Treasury bonds. If, as was the case with Ireland and Greece, lenders stop accepting these bonds or start demanding more bonds to reflectRead More →