Eurozone banks at risk of £165bn in write-downs

Banks in the eurozone will suffer "considerable" loan losses in 2010 and 2011, potentially leading to €195bn (£165bn) in futher write-downs, the European Central Bank warns.

Predictions of further potential write-downs are in the ECB's latest Financial Stability report, in which the bank says public finances pose the biggest threat to the eurozone, the Telegraph reports. "We are experiencing now a second wave of write-downs, which relate to the performance of loans," the ECB's vice-president Lucas Papademos said. The report comes as figures show May was the worst month for European stock markets since February 2009, due to fears of a sovereign debt crisis in the region. The FTSE 100 lost around 365 points, or 6.6%, in May, the worst monthly performance...