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THE debt crisis in Europe has finally, and officially, washed up on American shores. Last week, the mighty Federal Reserve moved to help European banks that have been having trouble finding people who are willing to lend them money. Some of these banks are growing desperate for dollars. Fearing the worst, investors are pulling back, refusing to roll over the banks' commercial paper, those short-term i.o.u.'s that are the lifeblood of commerce. Others are refusing to renew certificates of deposit. European banks need this money, in dollars, to extend loans to American companies and to pay their own debts. [ABSTRACT FROM PUBLISHER]

Seven European finance leaders have called for far-reaching curbs on bonuses for bankers in a strongly worded draft paper to be presented at a meeting on Friday of G-20 ministers in London. Citing the ''insatiable greed'' of some financial players and their ''destructive irresponsibility,'' the draft calls for the G-20 to impose a policy that would prohibit guaranteeing bonuses for more than a year and would require that bonuses be spread over several years. ''Bonuses should reflect the individual's and bank's true performances over time,'' the draft said. [ABSTRACT FROM PUBLISHER]