The hat goes round once more for European banks

The transcript discusses the panic in European stock exchanges following the Asian market crisis, highlighting significant drops in indices like the French Cack 40 and London's market. The failure of Germany's Hypo Real Estate bank exacerbates fears, with banking stocks suffering the most. Despite BNP Paribas becoming Europe's largest bank by deposits, the financial system remains unstable. European leaders convene to devise solutions, but the IMF stresses the need for action beyond declarations. A joint rescue fund lacks unanimous support, and individual countries strive to reassure savers while relying on state intervention to avert financial disaster.

What was the percentage drop of the French Cack 40 index during the crisis?

• 5%

• 9%

• 15%

• 12%

Which bank's failure caused widespread fear across Europe?

• BNP Paribas

• Hypo Real Estate

• HSBC

• Deutsche Bank

What did the International Monetary Fund emphasize to European leaders?

• The need for more meetings

• The importance of immediate action

• The creation of a new currency

• The reduction of interest rates

What is the main concern of European countries regarding savers?

• Increasing interest rates

• Ensuring deposit safety

• Reducing taxes

• Encouraging more savings

Who are banks and insurers looking to for support during the financial crisis?

• The state and taxpayers

• The European Central Bank

• International corporations

• Private investors