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Financial crisis wreaks havoc on global markets
Amid fears of a full blown crisis in the global financial system, the U.S. Federal Reserve on Tuesday pumped $50 billion into the financial system to help ease credit stresses, a day after upheaval in the American financial system sent shock waves through the stock market, producing the worst day on Wall Street in seven years.IMF chief Dominique Strauss-Kahn, meanwhile, warned the global financial crisis is not over and more banks could close, possibly leading to the disappearance of the independent investment houses. "The fact that a certain number of banks in the United States are restructuring shouldn't lead to panic," he told AFP in the wake of Monday's collapse of major U.S. investment bank Lehman Brothers. "But these events add to the uncertainty, and financial tensions cannot be excluded in the short term," with banks other than Lehman Brothers also in a bad position, he said. Predicting "a narrower global financial sector", the International Monetary Fund managing director said certain "players will disappear", particularly in the United States, with the possible gradual disappearance of independent investment banks like Lehman or Merrill Lynch. Posted by: Fred 2008-09-17 |
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