The European Central Bank announced yesterday it will work with the Federal Reserve to open new lines of credit to banks in the 17 nations that use the euro. The Bank of England, Bank of Japan and the Swiss National Bank are also pitching in to help. The ECB says it will allow banks in the euro zone to borrow money for three months — rather than the previous rule of a week — which injects dollar liquidity into European banks. The news comes as European banks are suffering from chronic financial squeezes.
Peter Spiegel, Brussels bureau chief for The Financial Times, covers what he calls "the general euro zone implosion."