European banks are facing another round of sovereign debt concerns. Some analysts believe that European banks that have exposure to Greek, Portuguese, and Spanish bonds may have to writedown values. Some firms are leaving cash with the central bank and not lending the funds to counterparties. One reason would be a concern that the counterparty could collaspe.
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http://www.reuters.com/article/idUSTRE65D40R20100614
Jim Sutliff