Banking Latest News: Dow Falls 200: Stocks Slammed as China Drives Meltdown

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Banking Latest News: Dow Falls 200: Stocks Slammed as China Drives Meltdown

Banking Latest News: Dow Falls 200: Stocks Slammed as China Drives Meltdown
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Banking Latest News: Dow Falls 200: Stocks Slammed as China Drives Meltdown

by Wochit 1:24 mins

Wall Street awoke to a global meltdown on Monday after the People's Bank of China in effect told participants in the Chinese banking system that they would be left to their own devices in handling an apparent liquidity crisis. Erste Group Bank reversed guidance from just two months ago, saying it plans a cash call to help repay emergency state funding and that operating profit will fall this year rather than hold steady. Its stock fell almost 10 percent, roughly matching what analysts say will be the extent of earnings dilution from the new shares. Central and eastern Europe's No. 3 lender said it will raise about 660 million euros ($867 million) in equity in the third quarter and that operating profit will fall as much as 5 percent this year. An independent panel set up by the World Bank to look at the validity of one of its highest profile country rankings said that the Bank should stop producing it because it may be misleading. The Bank's annual "Doing Business" report judges 185 countries on 10 criteria and compiles an index on the ease of doing business, assigning each country a rank. The rankings can carry huge weight with governments.

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