The Eurozone is grinding to a halt
By HUGO DUNCAN
16th September 2011
A major global bailout fund backed by British taxpayers was launched yesterday to stop Europe’s creaking banks running out of money.
The Bank of England teamed up with central banks around the world to flood the financial system with unlimited amounts of cash.
The dramatic intervention, on the third anniversary of the collapse of investment bank Lehman Brothers, underlined how worried finance chiefs are from America to Japan about the global economy.
It echoed the coordinated action taken by central banks in autumn 2008 during the worst days of the financial crisis.
The latest move came as the debt maelstrom in the Eurozone threatened to spiral out of control after weeks of turmoil on the financial markets.
European leaders are desperately trying to secure Greece’s future in the Eurozone but economists fear it is only a matter of time before the country defaults on its towering debts and quits the single currency.
That would bankrupt the Greek banking system and leave lenders across Europe, particularly in France and Germany, nursing heavy losses.