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Anorak | Barroso blames it all on America – only the German banks went bust first

Barroso blames it all on America – only the German banks went bust first

by | 19th, June 2012

SO, Barosso, the President of the European Commission has this to say about the current euro disaster :

“This crisis was not originated in Europe … seeing as you mention North America, this crisis originated in North America and much of our financial sector was contaminated by, how can I put it, unorthodox practices, from some sectors of the financial market.”

Which is interesting because it’s complete tosh.

The first two European banks to go bust were German: and they did indeed go bust because they’d bought lots of that dodgy American CDO stuff. But after that…

Northern Rock was a standard bank run, nothing to do with the Americans. RBS simply paid too much for ABN Amro at the top of the market. Lloyds would be fine if it hadn’t been pressured into buying HBOS: and HBOS went bust on plain vanilla UK mortgages. Dunfermline Building Society screwed up over commercial property loans. The Greek banks are OK actually, if only they didn’t own lots of Greek Government debt which has fallen in

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Posted: 19th, June 2012 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink