China and Middle Eastern nations would be asked to contribute to the fund, as well, in order to prevent the further spread of the crisis.
Europe is feeling the sting of the crisis, too, as the Dow Jones Stoxx 600 Index was driven to its worst week on record. Meanwhile, the 27-member European Union is trying to find a solution to the crisis while other individual European nations are moving on their own to strengthen their banking systems, reports Steve Scherer for Bloomberg.
EU finance ministers rejected the idea of a region-wide bailout fund, and it’s finding itself stymied by a requirement that major decisions be unanimous. There is also no central financial regulator.
DJ Euro STOXX 50 (FEZ) is down 47.2% year-to-date, and has lost 27.6% in the last two weeks.