Wall Street Freaks Over Portuguese Bank's Crisis
Banco Espirito Santo missis payment to creditors
By Kevin Spak, Newser User
Posted Jul 10, 2014 9:06 AM CDT
A broker watches a screen displaying information about turmoil in the Portuguese stock market and the sharp fall in Banco Espirito Santo shares, in a trading room of a bank in Lisbon, July 10, 2014.   (AP Photo/Francisco Seco)

(Newser) – The Dow plunged 153 points at the open this morning, reports the Wall Street Journal, as investors cast a worried eye toward Portugal and its second-largest lender. Banco Espirito Santo's shares plunged more than 17% before trading was halted on them, after its parent company revealed that it had missed short-term debt payments, Bloomberg reports. Portugal's central bank rushed to reassure investors that the bank is protected, but analysts are worried that this could signal a revival of Europe's debt crisis.

"Should the Portuguese situation continue to deteriorate, risk aversion contagion could quickly spread" throughout Europe, one New York securities strategist told clients. "The situation confirms the EU’s efforts to break the link between sovereigns and the related banking system has not been successful."

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Showing 3 of 11 comments
Jul 11, 2014 7:56 PM CDT
Interesting, Wall Street panics over the fortunes of a foreign bank while the good old USA is trillions in debt. Guess that they are more globally attuned than home country concerned.
Jul 10, 2014 1:21 PM CDT
The Dow PLUNGED 0.9% this morning....disaster!
Jul 10, 2014 11:12 AM CDT
but let me guess, the solution will be lower taxes right? or bigger bonuses right? Icealand : the ONLY country to understand how to solve the financial crisis.. Jail the bankers who tanked the economy, bail out the PEOPLE. and BOOM the economy gets fixed.