Labor Day not being kind to European markets

[Celebration]

Anyone here following the Euro markets? Germany down 5%, lowest level in twenty two months. Dow futures down over two hundred points.

Apparently if Euro banks had to value their sovereign debt at market, they don't have enough capital. May we live in interesting times...yup.

[OllieLotte]

1. Ouch. Thanks for the heads up.

Tuesday could be interesting in the US of A.

[Celebration]

2. more info

http://www.moneycontrol.com/news/international-markets/bank-shares-fallcocktailconcerns_582919.html

European bank shares fell heavily on Monday after it emerged that UK authorities had joined counterparts in the US, Europe and Asia by investigating the sale of asset-backed securities.

Deutsche Bank shares fell nearly 9% after it was named by the Financial Times as one of half a dozen banks being examined by Britain's Serious Fraud Office as part of an evidence-gathering exercise into whether financial institutions fraudulently misrepresented securities deals to clients and counterparties in the UK.

The SFO has spent the past two years looking into sales of asset-backed securities - bonds backed by the repayments on vast pools of loans such as mortgages - after consulting senior City figures about which areas the agency should be looking into after the financial crisis.

The investigations come as Asian, European and US investment banks were last week sued by the US Federal Housing Finance Agency for allegedly mis-selling mortgage-backed securities. The FHFA is suing 17 financial institutions, including Nomura, Barclays and Bank of America, arguing that they mis-sold more than $100bn of securities.