Bank of England Asks UK Banks To Detail Their Exposure To Deutsche And Italian Banks

‘In what may or may not be a coincidence, just hours after Bloomberg reported that DB launched a probe into whether it “misstated” derivatives, moments ago the FT reported that the Bank of England is seeking details from large British banks on their current exposure to Deutsche Bank and some of the biggest Italian banks, including Monte dei Paschi, “amid mounting market jitters over the health of Europe’s financial sector.”
The FT notes that the request was made in recent weeks by the BoE’s Prudential Regulation Authority as investors sold off Deutsche and Monte dei Paschi, both of which have been the subject of scrutiny over their capital levels. Supervisors worldwide have attempted to curtail the links between large institutions since the 2008 banking crisis, when the collapse of Lehman Brothers and other big groups threatened to drag down the entire global financial system.’
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