Dexia, the bank bailed out by the French, Belgian and Luxembourg governments, loaned €1.5bn to two of its investors who then used the cash to buy shares in the company, it has been claimed.
Emerging market currencies fell sharply during September after holding up pretty well through August. Developing market exchange rates even lost ground against the euro, despite Europe being the focus of market fears.
A decision - scheduled for Sunday - on whether to boost the eurozone's €440bn rescue fund has been delayed due to fresh disagreement between France and Germany about how to address the debt crisis.
The FTSE 100 was trading at its highest level since early August this morning, as optimism over the crisis in Europe continued to cheer investors.
Managers are moving back into global equity markets as the VIX ‘fear index' falls from a recent peak.
JO Hambro Capital Management's Paul Wild has urged investors not to give up on Europe as a "grand plan" is on its way.