Officials were stung by the implosion of Wall Street firm MF Global, which gambled and lost on European debt, and they are working on contingency plans for a worst-case scenario should another financial firm crumble.A senior U.S. Treasury official said regulators are contacting big U.S. financial institutions to make sure they are scaling back exposure to Europe and are ready for a potential worsening of the crisis.(Source: Reuters 11/14/11)
This cannot end well for Europe. IF America, Asia are not only not considering reducing their current exposure, there is strong likelihood (certainty in fact) that they will not buy the new ECB (EFSF) Bonds. Cannot say that I am surprised. Speaking to several Canadian bank treasurers one theme has been consistent for the past 3 years -- reduce European bank exposure and monitor everything you hold, mark to market on a daily base and ask for collateral.
Europe seems to be entering the endgame.