WARNING: There's A Bizarre Story Floating Around About A Big Euro Bank Almost Failing, But It Doesn't Make Any Sense

BusinessInsider writes that there's a lot of buzz about this post up at Forbes, which starts with this...

It appears that a big European bank got close to failure last night. European banks, especially French banks, rely heavily on funding in the wholesale money markets. It appears that a major bank was having difficulty funding its immediate liquidity needs.

The basis for this? Nothing, except the news today of the big central bank intervention.

Unless the author knows something he's not telling people, it appears the author has purely surmised this failure scenario from the fact that all the banks got in there to ease liquidity. Now, obviously liquidity is an issue for banks -- hence the action -- but it doesn't necessarily follow that last night a bank nearly failed.


Read more: http://www.businessinsider.com/forbes-article-on-large-bank-failure-2011-11#ixzz1fCpWRCwa