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Commercial Property News
Bank shares plummet as LIBOR soars despite massive BoE Support.
Central Banks have stepped in to support the banking industry as liquidity evaporates following the crisis yesterday. The Bank of England injected £20 billion today, after five billion on Monday. Demand was three times the amount of extra liquidity offered today. The European Central Bank injected €70 billion into money markets today, after 30 billion yesterday. Demand from banks for today's funds, a measure of how much other sources of liquidity are drying up, topped €100 billion.
Interbank lending rates have shot up as banks shy away from lending to each other.The overnight sterling Libor rate surged to 6.79375% from 5.49375% on Monday, the highest since April 2001 and well above the Bank of England's base rate of 5%, highlighting major concerns about the health of the financial sector.
“It’s clear that this financial market crisis is the worst worldwide in decades—and it is not over,” Germany’s finance minister, Peer Steinbrueck, told parliament.
Banks share prices tell their own story and HBOS has slumped 31% today while others like Fortis are down 14% and RBS down 13%. At noon today the FTSE hit a 3 year low.
Interbank lending rates have shot up as banks shy away from lending to each other.The overnight sterling Libor rate surged to 6.79375% from 5.49375% on Monday, the highest since April 2001 and well above the Bank of England's base rate of 5%, highlighting major concerns about the health of the financial sector.
“It’s clear that this financial market crisis is the worst worldwide in decades—and it is not over,” Germany’s finance minister, Peer Steinbrueck, told parliament.
Banks share prices tell their own story and HBOS has slumped 31% today while others like Fortis are down 14% and RBS down 13%. At noon today the FTSE hit a 3 year low.
Tue, 16th Sep 2008