John pierpont morgan it is said, whiled away the time while orchestrating a plan to avert the financial crisis of 1907 by steadfastly playing solitaire. A century later, the game dujour involves toying with dominoes. Funds and traders are casting about for the next banks to fall (and enthusiastically selling their shares).rnSo far most of the falling stones have been American. But some European banks are also teetering. The latest is HBOS, a well-capitalised but weakly funded British bank that will lose its independence. On September 18th HBOS, Britain's biggest mortgage lender, said it had agreed to be taken over by Lloyds TSB, another of the country's leading banks. There was government pressure, but both sides denied there had been a bail-out. Any hint of one would infuriate shareholders of Northern Rock, another British mortgage lender that was nationalised last year. They were largely wiped out.
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