Category: European Business

Was the Spanish bank bailout botched?

The big economies of Spain, Italy and even France are now looking increasingly shaky.

Spain’s problems are probably the most acute; the cost of borrowing is around seven per cent for Madrid at the moment and that is a psychologically important level as it is the level at which Greece, Ireland and Portugal needed international financial assistance.

Bank Order Led to Losing Trades

J.P. Morgan’s Efforts to Shield Itself From European Market Fallout Prompted Disastrous Bets
J.P. Morgan Chase & Co. told traders several months ago to make bets aimed at shielding the bank from the market fallout of Europe’s deepening mess. But instead of shrinking the risk, their complicated bets backfired into losses of as much as $200 million a day in late April and early May, people familiar with the situation said.