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Money, money, money

Posted by Danske Bank A/S in October 3rd 2008  
A key issue in the financial crisis at the moment is the tensions in the money markets. This is evident in the sharp rise in money market rates seen in recent weeks around the world - not least in the US. The trigger for the renewed tensions was the bank-ruptcy of Lehman Brothers on 14 September. This had several implications. First, perceived counterparty risk went up as fears of other bankruptcies swept through the system. Banks therefore became even more reluc-tant to lend money to other

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Filed under: Fundamental