9/1/2008

Concerns that banks are dumping troubled securities on the European Central Bank in exchange for billions in loans prompted the central bank to consider toughening rules regarding acceptable collateral. Additionally, there is concern that UK lenders may be establishing a presence in the euro zone to obtain ECB funding as the central bank's terms are more advantageous than those of the Bank of England. The move could put additional pressure on struggling euro-zone banks.

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