Alvarez & Marsal Challenges facing the European Banking Sector. September 2011. Banking Crisis is back in Europe. Financials index. 120. S&P500 financials. 110. 100. 0. 0. 1. 90. =. 0. 1. 0. 2. 80. n. a. j. x. e. 70. d. n. I. 60. Euro STOXX financials. 50. 40. jan.
Euro STOXX financials
Source: Reuters EcoWin
iTraxx Financials Senior 5 year CDS
January 16th; The US government provides the Bank of America another 20 billion dollars from its 700 billion dollar financial rescue fund to help it with the losses incurred when bought Merrill Lynch
June 22nd ; Greek PM tries to persuade MPs to approve €28 billion of cuts, tax rises, fiscal reforms and privatisation plans.
Euro zone ministers say the legislation must be passed to receive a 12billion Euro loan Greece needs to pay its debts
February 11th; Ireland says it will inject €7 billion into Bank of Ireland and Allied Irish in return for guarantees on lending, executive pay and mortgage arrears.
September 30th;The Irish government guarantees deposits in the country’s main banks for two years
May 2nd; Greece gets a €110billion bail out from other countries using the euro, and the IMF
January 15th; The Irish Government says it is to nationalise the Anglo Irish Bank
November 21st; Irish Finance minister says he will recommend to the Government that the country formally request a bailout package from the EU, ECB and IMF
September 15th; Wall Street Bank Lehman Brothers files for Chapter 11 Bankruptcy protection and Merrill Lynch is taken over by Bank of America
* Measured impact of a haircut that is greater than 5% of Tier 1 Capital