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Banking Jitters Send European Shares Down

Experts remain skeptical a $700 billion US bailout will ease credit woes

By Jim O'Neill,  Newser User

Posted Sep 29, 2008 6:59 AM CDT

(Newser) – Investors drove share prices down across Europe and Asia as bank emergencies multiplied  and news of the $700-billion US bailout deal failed to loosen up frozen credit markets, reports Bloomberg. British mortgage lender Bradford & Bingley was taken over by regulators and a trio of European governments jumped in to pull financial-services firm Fortis back from the brink. 

French bank Dexia saw its shares plunge 23% on rumors it would launch an emergency round of funding and the German government offered a $50 billion bailout to commercial property lender Hypo Real Estate Holdings after its shares plummeted 62%. Experts remain unconvinced that the US bailout will unlock money markets. “The banking crisis is not over,” one fund manager tells Bloomberg.


Brokers work at the stock exchange in Frankfurt, central Germany.
Brokers work at the stock exchange in Frankfurt, central Germany.   (AP Photo/Daniel Roland)
A woman looks into a branch of Bradford & Bingley bank in Croydon, South London.
A woman looks into a branch of Bradford & Bingley bank in Croydon, South London.   (AP Photo/Sang Tan)
A man walks by the London Stock Exchange.
A man walks by the London Stock Exchange.   (AP Photo/Sang Tan)
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