UK banks and sovereign Credit Default Swap Spreads
- Posted by Marc on May 1st, 2009 filed in People
- 1 Comment »
Bankruptcy risk measured by 5 years CDS 5 of the 4 major banks and UK government, (Source IMF).
¿What happens when the state has to save the major banks in a country?. Well very simple, the risk of bankruptcy of private banks is transferred to the entire country. Exactly as happened with Ireland, when Ireland government guaranteed all deposits from banks customers.
It’s a bottom up movement. In Spain, we are seeing the same effect more slowly.
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May 4th, 2009 at 3:21 pm
[...] UK banks and sovereign Credit Default Swap Spreads [...]