As if the threat of BAC failing isn't enough to send the market into a panic, the UK Daily Mail has now reported that France's SocGen, and Italy's UniCredit are also on the ropes and on the verge of collapse over bad Greek loans.
Perhaps this is why the DOW closed -634, and why we could see a historic rout on Tuesday if The Bernank does not announce QE3.
Should any of these 3 mega banks fail, 2008 will be surpassed by the end of the day.
The bad news for the 3 mega banks?
Today is Monday. 4 more business days before the temporary safety of the weekend.
Fears are growing this weekend that two of Europe’s largest banks may require a bailout, having been hugely damaged by the worsening crisis across the eurozone.
In France, President Nicolas Sarkozy is having to confront the possibility that the country’s second-biggest bank, Societe Generale -commonly known as SocGen - is on the brink of disaster after huge losses over loans made to Greece.
The chilling possibility of the largest bank in Italy, UniCredit Banca, suffering a similar collapse if a bailout is not implemented comes as Silvio Berlusconi already faces an increasingly dangerous national economic situation.