News Alert: World Bank moves to prop up the European banking system

	Wednesday, January 25, 2012 9:47:30 AM ECONOMY/BUSINESS NEWS ALERT World Bank moves to prop up the European banking system The World Bank is moving to prop up the European banking system in response to the crisis in the region, echoing the steps it took during the 2008 world crisis and reflecting heightening fear that the euro's problems are starting to crimp the global economy. The bank's focus, as it was in 2008, will be to keep nations in eastern Europe's developing markets and central Asia from bearing the brunt of an outside crisis. This time, a likely euro area recession and new euro area banking rules are threatening a retreat by western European banks trying to strengthen their financial position at home. The amount of money committed -- $27 billion -- is modest in comparison to the multitrillion-dollar war chest that the International Monetary Fund says is needed to fight the crisis. But it is a significant sign that the euro zone's problems are infecting other countries through depressed trade and investment. Read more at: http://www.washingtonpost.com/business/economy/world-banks-action-on-europe-reflects-fear-of-another-global-meltdown/2012/01/25/gIQACjmDQQ_story.html Or visit PostBusiness.com. SEND TO A FRIEND UNSUBSCRIBE E-MAIL CENTER GET HELP Washington Post Digital E-mail Customer Care 1150 15th Street NW Washington, D.C. 20071 ©2011 The Washington Post Privacy Policy