A LETHAL LOOPHOLE AT EUROPE'S BANKS.

This article discusses the impact of investments in credit default swaps by European banks on their financial position following the tightening of credit markets in 2008. The use of instruments such as credit default swaps to avoid violating the regulations established by the Basle accords on cash reserve holdings required for banks is noted. financial troubles at banks including Dexia NV and Fortis SA are noted.