WSE loses 4.2% as European banks go under
Hardly anyone had time to digest the news that the British government had nationalized another bank before it was announced that the governments of Belgium, the Netherlands and Luxembourg intervened to save Fortis, one of Europe's largest financial institutions, from bankruptcy at a cost of €11.1 billion. The Belgian bank just last year had recorded a net profit of €4 billion.
Meanwhile in Iceland, the largest domestic bank Glitnir was nationalized, then on the German bourse, there was a run on shares of Commerzbank (the owner of Polish BRE group), which fell by almost 23 percent.
In Dublin, shares in Allied Irish Bank (which controls Polish BZ WBK) slumped by 17 percent. The news heavily impacted the WIG20 index, as it fell by 5.03 percent. That followed the trend of several other European stock exchanges, some of which recorded their largest falls since 1997.
Sources: Rzeczpospolita, Parkiet, Gazeta Wyborcza (A.K.)
Meanwhile in Iceland, the largest domestic bank Glitnir was nationalized, then on the German bourse, there was a run on shares of Commerzbank (the owner of Polish BRE group), which fell by almost 23 percent.
In Dublin, shares in Allied Irish Bank (which controls Polish BZ WBK) slumped by 17 percent. The news heavily impacted the WIG20 index, as it fell by 5.03 percent. That followed the trend of several other European stock exchanges, some of which recorded their largest falls since 1997.
Sources: Rzeczpospolita, Parkiet, Gazeta Wyborcza (A.K.)
