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Banking stocks took a major hit across Europe after news the US bailout had failed (Photo: Wikipedia)

Europe scrambles to save banking system

European authorities in Brussels, Frankfurt and at EU member state level are scrambling to save the continent's financial system after bank stocks plunged when US lawmakers rejected a $700 billion bailout of Wall Street on Monday (29 September).

Banks are petrified of lending to one another for more than one day, requiring central banks to flood their coffers with the money they need to stay in business.

After yesterday's part-nationalisation of Belgo-Dutch banking giant Fortis a...

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Banking stocks took a major hit across Europe after news the US bailout had failed (Photo: Wikipedia)

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