News round-up: 7 Oct 2008

By Edward Harrison On Oct 7, 2008

The Credit Crisis has clearly moved on to Europe, as events there are showing the kind of crisis we have been seeing here.

The UK Treasury has broached the possibility that it would buy equity in major British banks. Iceland is on the verge of national bankruptcy, has nationalised its 2nd largest bank, has taken a huge loan from Russia, and has demanded Icelandic firms repatriate assets from abroad. In short, they are in big trouble up there.

Meanwhile, here in the States, we get ready for a 2nd Presidential debate with the candidates seeming to talk more about character than real issues. Anyone who talks character and not issues in this economic climate does not have much to offer. Let’s see how they measure up during the debate. Too bad Ron Paul’s not in there to shake things up a bit.

Let’s hope we see a better day in the markets. After all the Plunge Protection Team is on the case.

Europe in Crisis
Iceland in Landsbanki rescue move – BBC News
RBS Shares Extend Sharp Losses – WSJ
Banking crisis hits Iceland and Britain – Reuters
Royal Bank of Scotland: Treasury needs to stop spinning and act – Telegraph
RBS, Barclays in Talks on U.K. Government Funding – Bloomberg
Unwinding Iceland – FT Alphaville
Dexia Gains New Chairman, CEO – FT Alphaville
Willem Buiter: Banking System in North Atlantic Probably Insolvent – Naked Capitalism
UK economy ‘already in recession’ – BBC News
Germany may have to ‘restructure’ banking system – FT Alphaville
Punish reckless lending, says Swedish regulator – Guardian
Iceland’s Credit Ratings Lowered by S&P After Bank Guarantees – Bloomberg
Russia to Lend Banks $36 Billion for Five Years, Medvedev Says – Bloomberg
Yen Near Three-Year High Versus Euro as Iceland Receives Loan – Bloomberg