Liquidity crisis is a global concern

Thebullishtrends: As per the latest reports not only US banks even other banks are also facing a nervous future, with investors leaving Lehman Bros for fear it would be next to face a liquidity crisis.

European banks - including UBS in Switzerland, HBOS in Britain and SocGen in France – also suffered losses of more than 10 per cent on Monday as concern affected global markets. Some of Japan's largest banks also lost value, with Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group down three per cent or more. The pressure on banks is set to continue and is expected to prompt many to seek cash injections from sovereign wealth funds – large cash reserves held by rich countries.