Chancellor Merkel and President Sarkozy focused their attention on big banks in their meeting yesterday and German Finance Minister Steinbrueck is doing the same today, saying banks will have to keep bigger capital cushions after the credit crisis than they did before. Given the outrageous use of leverage by the banks, they had not a cushion but a mouse pad of capital…
Big corporations are having an easier time refinancing operations on the capital markets, Steinbrueck says. Small and mid-sized firms are not as lucky, it would appear.
EUR/USD is consolidating in the 1.4315 area after finding buyers on dips below 1.43. Cable and AUD are garnering the bulk of the attention so far this morning.
