To strengthen the banking sector, the governments of the Eurozone will put in place a fund along the lines of the American Tarp, capable of making capital injections of up to 150 billion euros. This is the forecast by JP Morgan Securities, according to which the banks of the Old Continent should carry out capital increases for around 148 billion.
Meanwhile, the Greek central bank has activated a bailout fund for the small bank Proton, suspected of having broken anti-money laundering rules and now de facto nationalised. This is the first intervention by the FSF financial stability fund, created by the Greek central bank and the country's international creditors.
Due to the fear that other banks might follow Proton's path, the Greek banks' index dropped more than 10%. But the news caused the entire European banking sector to turn negative, leading the Stoxx to lose more than half a point.
