Money and Metals

The Times Online ran this unusual report. "Financial regulators in all EU countries are to be asked today to prepare for the collapse of a big hedge fund or a similar sudden financial shock. EU finance ministers and central bankers, meeting in Vienna, were told that the collapse of a hedge fund could now destabilise European financial systems as well as the financial markets."

The Financial Times reports it was a drill. "Europe’s financial regulators have held a 'war game' exercise, simulating a continent-wide financial crisis, amid fears they are ill- prepared to stop a problem in one country spreading across borders."

"The exercise involved simulating the collapse of a big bank with operations in several large countries to see whether the European Central Bank, national central banks and finance ministries could work toget- her to contain the crisis."

'It is understood the exercise took place at the headquarters of the ECB in Frankfurt at the end of last week. One person involved said: 'It is like checking whether a nuclear power plant can survive a plane crashing into it.'"

"The exercise took place on the eve of a meeting of European Union finance ministers and central bank chiefs in Vienna, at which the bloc’s financial stability was high on the agenda."