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The article reports that stock prices in the U.S. and Europe fell due to investors' concerns about the finances of European banks. The Dow Jones Industrial Average declined by 1.6 percent. European bank stocks fell significantly, including the stocks of large banks Deutsche Bank AG and Barclays Bank PLC. It is noted bank stocks are particularly vulnerable to rumors due to the lack of information on bank finances.

The article discusses signs of improving credit conditions. Demand for commercial paper issued by both U.S. and European banks has increased substantially, while the three-month dollar Libor has fallen to a record low. However, some banks are hoarding funds received for commercial paper, thus undermining government efforts to promote liquidity.

The article discusses the Group of Twenty (G-20) meeting to take place in London, England during the week of March 30, 2009. Although British Prime Minister Gordon Brown had hoped the meeting would result in sweeping reform of the global financial system, expectations are now much more subdued. European nations generally don't agree with the U.S. and Great Britain that more fiscal-stimulus measures are needed in Europe.

The article discusses implications for U.S. and European banks of the approaching maturity of hundreds of billions of dollars worth of floating rate notes. Issued in 2006, these notes will come due during 2008 and 2009, a period likely to be marked by banks' continuing struggle to secure capital. Analyst Alex Roever believes $787 billion worth of notes will have to be retired before 2010.

Reports that with the merger between the New York Stock Exchange (NYSE) and electronic trader Archipelago Holdings Inc., the U.S. has moved towards the system employed by Europe, where stock exchanges have replaced human traders with computers. Advanced nature of trading at European stock exchanges; Benefits of electronic trading, including increased trading volume and lower costs for investors; Implications of the merger on competition among stock markets in the U.S.

Discusses how European banks are using more sophisticated security methods than the U.S. to protect consumers from data theft. Description of European security methods, such as issuing customers a device that generates random codes for accessing their accounts online; Vulnerability of security methods used by U.S. banks; Reasons for lagging security methods in the U.S., including the large volume of customers compared to European banks.

The article focuses on the London interbank offered rate (Libor), an interest rate for short-terms loans between banks that is used to set rates on trillions of dollars of U.S. commercial and mortgage loans. Only 3 of the 16 banks whose rates set Libor are based in the U.S. This means that the financial difficulties of European banks can create undue damage to U.S. borrowers.

The article reports on the problem being faced by U.S. and European banks as the global financial crisis spreads to deteriorating corporate debt. It says that analyst and investors are expecting for as much as $15 billion in leveraged-loan-related write-downs at commercial and investment banks in the first quarter of 2008. It states that the banks were unable to find investors for the corporate debt after the $200 billion leveraged-loan pipeline seized up in August 2007.

The article reports that European central banks are focusing on the rise of interest rates on commercial banks' dollar-borrowing in money markets and considering what they can do about it in 2008. As reported, the major cause of this problem is the London, England interbank offered rate which stays elevated in contrast with expected U.S. Federal Reserve interest rates. According to the article, the Federal Reserve ascribes that the rising rates result in European banks to lend dollars.

This article discusses the turmoil in the capital and money markets in the U.S., Europe and Asia. It explains that investors fear about the extent of the impact of the subprime mortgage problem in the U.S. largely caused the turmoil. The Federal Reserve and the central banks in Europe and Japan have reacted to the squeeze in money supply by release billions and lowering the interest rates. It says that the commercial paper market, which observers believe, is largely insulated from the turmoil, did not remain unscathed.