WSJ TOP STORY TODAY: EUROPE DEBT CRISIS COULD SPILL into the U.S. banking system ( coming from fed officials)

Federal and state regulators, signaling their growing worry that Europe's debt crisis could spill into the U.S. banking system, are intensifying their scrutiny of the U.S. arms of Europe's biggest banks, according to people familiar with the matter.


The Federal Reserve Bank of New York, which oversees the U.S. operations of many large European banks, recently has been holding extensive meetings with the lenders to gauge their vulnerability to escalating financial pressures. The Fed is demanding more information from the banks about whether they have reliable access to the funds needed to operate on a day-to-day basis in the U.S. and, in some cases, pushing the banks to overhaul their U.S. structures, the people familiar with the matter say.


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[link to online.wsj.com]


MY OPINION: "PEOPLE FAMILIAR WITH THE MATTER SAY" ONLY MEANS: A GUY FROM THE FEDERAL RESERVE. PERIOD.