Changes

HBOS (Halifax Bank of Scotland) had severe losses and in September was taken over by a bigger bank, the Lloyds TSB Group.   

HBOS (Halifax Bank of Scotland) had severe losses and in September was taken over by a bigger bank, the Lloyds TSB Group.   

In late September, the Fortis bank, the world's 20th largest business, was partially nationalized by three governments who injected $16 billion in emergency funds. The [[Belgium|Belgian]], [[Netherlands|Dutch]] and [[Luxembourg]] governments tried to inject capital but as consumer confidence plunged, Netherlands nationalized the Dutch wing of the company and the rest was sold in early October to the French bank BNP Paribas for €14.5 billion ($19.7 billion). In [[Germany]] Hypo Real Estate was given €35 billion ($50 billion) of credit guarantees by the government and other banks.  The government of [[Iceland]] took over Glitnir, the island’s third largest bank, by injecting €600 million ($862 million) of equity, as the entire island economy seemed shaky because it depended so much on large foreign loans. Most of the European countries hurriedly announced guarantees of personal bank deposits to avert further drop in consumer confidence and runs on the banks.  Stock markets around the world continue to decline as pessimism worsens.

In late September, the Fortis bank, the world's 20th largest business, was partially nationalized by three governments who injected $16 billion in emergency funds. The [[Belgium|Belgian]], [[Netherlands|Dutch]] and [[Luxembourg]] governments tried to inject capital but as consumer confidence plunged, Netherlands nationalized the Dutch wing of the company and the rest was sold in early October to the French bank BNP Paribas for €14.5 billion ($19.7 billion). In [[Germany]] Hypo Real Estate was given €35 billion ($50 billion) of credit guarantees by the government and other banks.  The government of [[Iceland]] took over two large banks, as the entire island economy verged on bankruptcy because it depended so much on large foreign loans. Most of the European countries hurriedly announced guarantees of personal bank deposits to avert further drop in consumer confidence and runs on the banks.  Stock markets around the world continue to decline as pessimism worsens.

The European Central Bank aggressively lent money to banks trying to ensure that banks would have adequate cash. The moves have not reassured savers or investors, and European stock markets have fallen even further than the American stock markets, as have the stock markets in China and Russia.  The leaders of France, Germany, Britain and Italy vowed to prevent a Lehman Brothers-style failure in Europe but they did not offer an American-style bailout package.<ref>Carter Dougherty, Nelson Schwartz and Floyd Norris, "Financial Crises Spread in Europe," [http://www.nytimes.com/2008/10/06/business/06markets.html?_r=1&hp&oref=slogin ''New York Times,'' Oct 6, 2008]</ref>

The European Central Bank aggressively lent money to banks trying to ensure that banks would have adequate cash. The moves have not reassured savers or investors, and European stock markets have fallen even further than the American stock markets, as have the stock markets in China and Russia.  The leaders of France, Germany, Britain and Italy vowed to prevent a Lehman Brothers-style failure in Europe but they did not offer an American-style bailout package.<ref>Carter Dougherty, Nelson Schwartz and Floyd Norris, "Financial Crises Spread in Europe," [http://www.nytimes.com/2008/10/06/business/06markets.html?_r=1&hp&oref=slogin ''New York Times,'' Oct 6, 2008]</ref>

===$700 billion bailout proposed===

===$700 billion bailout proposed===