News Journal

Banking crisis reaches Europe

The European shares lowered on Monday as credit crisis hit the banking sector of Europe and the plan to nationalize two banks in London was left incomplete. The Euro rates and Sterling went down and the government bond prices went up.

The governments of Belgian, Dutch and Luxembourg are trying to plan a rescue for the company Fortis to prevent it from meeting an end like the Domino. U.K. government is preparing to sell Bradford & Bingley’s branch network to Spanish bank Santander and nationalize the left portion of the bank.