Bank’s Collapse in Europe Points to Global Risks

As Europe’s debt crisis has deepened, a recurring question is how much risk it poses to the United States economy, and especially American banks.

While American financial institutions have sought to limit any damage by reducing their loans and thus lowering their direct exposure to Europe’s problems, the recent rescue of the Belgian-French bank Dexia shows that there are indirect exposures that are less known and understood — and potentially worrisome. More Read