European banks: new funding fears (FT)

The Financial Times reports that the European Central Bank has lent dollars to a eurozone bank for the first time since February in the latest sign of escalating tensions in the region's financial system.

The bank borowed $500 million for one week. The FT reported that the news suggested that it was having difficulties obtaining the dollar funds it required.

Analysts were quick to reject the idea that this is the precursor to another 2008 financial crisis. The markets don't seem so sure: they're down nearly 5 percent this morning.

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Paddy Hirsch is a Senior Editor at Marketplace and the creator and host of the Marketplace Whiteboard. Follow Paddy on Twitter @paddyhirsch and on facebook at www.facebook.com/paddyhirsch101

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