Markets welcome bank nationalisation
Markets rally on the decision by the EU û and belatedly also the US û to inject capital into ailing banks in return for part-ownership, but analysts warn that more hardship awaits as investor focus shifts to earnings growth.
It is normally not the sort of thing that appeals to market participants, but the rescue programmes outlined over the past few days, which essentially mean a part-nationalisation of banks across Europe and the US, turned out to be just the ticket for luring investors back into the battered stockmarkets.
Having initially opposed such drastic measures because of fears that they would remove all incentives for banks to properly manage their risks, authorities in a wide range of countries,...
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