> >The EU banking system is the mightiest and best-managed on the
> >planet
>
> Is that why they've lost so many euros in Asia and Russia?
With $13 trillion in total assets, the EU banks have the reserves to handle Russia's $130 billion debt, not to mention the SE Asia crisis, without breaking a sweat (remember, even that mighty Chinese economy is only slightly bigger, in GDP terms, than the economy of Spain). This is a fairly decent performance, compared to Japan's banking crisis, or that of the US banking industry, which weighs in at around $4.5 trillion in assets. Also, the EU banks tend to have a long-term perspective on investments; Deutsche Bank recently accepted a Russian repayment plan, which basically amounts to a 95% write-off on certain forms of debt. The bankers don't care, because (1) they're insured by the state, and (2) they know they can never, ever fully compensate the Russians for the devastation of WW II. It's smart, long-term politics to forgive the debt and keep Russia afloat; the long-term returns will more than pay for the costs of such short-term crises.
Compare this with how US banks have utterly trashed Latin America. Need we say more?
-- Dennis