UK banks are running away from «the steep cliff of the Eurozone», and have pulled out billions of pounds from the the zone. Fears are really growing. Will we soon see a “Lehman-style” event, connected to a Greek default?
According to the British paper The Telegraph it is especially Barclays and Standard Chartered that dramatically have reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.
One source hat told the Telegraph that it is “inevitable” that British banks will look to minimise their potential losses in the event the eurozone crisis were to get worse. “Everyone wants to ensure that they are not badly affected by the crisis,” said one bank executive.
Looks like 2008
This is according to The Telegraph looking more and more like the build up before the Lehman collapse in 2008.
How long can we live on the Eurozone dream? The UK banks basically sees that it is over. When will the authorities and banks of Norway see the same? And last, but not least. What is the European exposure for the Norwegian oilfund? How bad can this get for Norway?