Why European banks will not be bailed out

For as long as anyone can remember the Americans and Brits have considered their financial services better than anything on show in continental Europe.

US investment banks in particular seemed to rule the world. Remember how Goldman Sachs was hired to help sort out Northern Rock? How long ago that seems.

Meanwhile, the City of London has long prided itself on absorbing the best talent from Europe and using their skills to make billions.

But with investment banks now on the verge of a humiliating $700bn (£380bn) bailout and British lenders still too frightened to loan even to each other, the European seems to be in the ascendancy.

Wide gap

The European response to the financial crisis has been led by the European Central Bank (ECB).