Fears Mount On The Health Of The World's Global Banking System

A file picture of the New York Stock Exchange. Bank shares are falling as investors question whether they can profit from continued low interest rates. Photograph: Carlo Allegri/Reuters

New York Times: Nervousness About Global Banking Giants Intensifies

An unsettling trend has emerged from the heavy selling that sent global markets tumbling this year: Investors are getting nervous about the world’s biggest banks.

The concerns about the banks are clearly reflected in the stock markets, where shares in banking giants are plunging. But there are also ominous signs in markets that investors use to bet on the perceived creditworthiness of large financial firms.

A crucial benchmark for the banking sector, the KBW Nasdaq Bank Index, was down more than 3 percent on Monday and had lost nearly 20 percent of its value this year.

There were other signs of nervousness.

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Update #1: The public's confidence in banks is eroding in Eurasia (Business Insider)
Update #2: Deutsche Bank Dips To Record Low As Fears Grow Over Banking Crisis (Value Walk)
Update #3: Financial Crisis 2007 All Over Again - Banks Starting To Implode (Market Oracle)
Update #4: Shares dive as fears mount for health of global banking (The Guardian)

WNU Editor: Even the Central bankers are starting to worry .... Global central banks are running 'out of ammo' (CNN). .