Hong Kong Backs Its Banks

Since the economical crises started approximately one month ago in the USA, lots of previously strong banks tumbled into a financial gap which caused huge losses for the shareholders.

To prevent scenes such as the one of Lehman Brothers, American and European governments forced Asian regulators to be aware and take precautions for their banks before they run into trouble.

Therefore Hong Kong’s financial representatives declared that they would inject their banks with $773 billion and reassured all the people that their banking system is robust, healthy and that there is no need to panic.

Hong Kong specialists say that they are rather making preparations for a rainy day instead of already fixing real problems in the banking system.

Roeland Delrue

Source: http://www.nytimes.com/2008/10/15/business/worldbusiness/15deposit.html?_r=1&ref=business&oref=slogin