Subprime: The Ugly American Hits Europe

French bank BNP suspends subprime-linked funds. Europe's central bank responds; stocks tumble

Financial markets' tentative optimism on Aug. 8—when investors appeared to be less worried about the effects of credit-market contagion from the U.S. subprime crisis on the global economy—vanished quickly one day later. The main players in the latest drama were a money-center French bank, the European Central Bank, and the Federal Reserve.

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