european banks

As European banks move to shed businesses and write off losses, their regulators might veto any steps they fear could inflict further damage.

Worries about euro zone economies have caused a sharp drop-off in bond trading volume, causing European banks to question how much longer they will stick with bond divisions that are now overstaffed.

As European banks pull back on lending, companies around the globe are finding it harder to borrow, edging the world economy toward another slump.

Finance ministers meeting in Paris face new hurdles after rating agencies issued warnings about European banks.

Gainers

• PowerShares DB US Dollar Index Bullish (NYSE: UUP) up 0.46 percent to $21.76. U of Michigan consumer sentiment came in at 57.8, better than the 56.3 expected on the Street.
  
  The number was stronger than 55.7 reported in August. Confidence in the U.S. may lead to a stronger economy as more investments flow in as consumers open up wallets just a little bit more.
  
  Also, the Fed and ECB hashed out a deal with central banks in Japan, England, and Switzerland to support European banks through the end of the year.
• iShares Silver Trust (NYSE: SLV)

Major central banks moved Thursday to remove doubts about the ability of European banks to borrow dollars, opening new lines of credit to institutions for longer periods than before.

CNBC — not its smaller rivals — seems to be gaining the most from interest in the downgrade of the United States debt rating and concern over European banks.

Eight banks failed and another 16 barely passed the much-anticipated stress tests, which measured whether they would be able to survive economic shocks.

It is commonly assumed that a restructuring of Greece's sovereign debt will be a disaster for European banks. This may well be true, but not in the way that many expect.

The IMF singled out European banks as it insisted Wednesday that more needs to be done to shore up the global financial system, saying Europe's weak banks are "caught in a maelstrom" and must beef up their financial buffers.