Austrian banks face the consequences Swiss Franc strength!

In an attempt to halt the interminable rise of the Swiss Franc against the mortally wounded Euro, hints were made yesterday that the former currency could be pegged to the Euro. If I know the Swiss, such a move for anything other than the very shortest time scan is impossible in a country which still proudly maintains its direct democracy.

Austrian banks are now coming under pressure from their exposure to East European debt denominated in Swiss Francs, read here, as I had expected when suggesting on this posting of 3rd August, that their euro notes not be among those you take home after your summer holidays this year.