As a Brit, I have to say take financial articles in the Telegraph/Mail with a pinch of salt. However, the Guardian is very good and the FT excellent.
In the article mentioned , the opening statement ‘The Federal Reserve faces a potential veto of its rescue measures.’, just does not make sense.
So what is the dollar falls more. That does not constrain the Federal Reserve when it is in crisis mode. Only yesterday it extended lending facilities to the whole investment banking gang.
Anyway it is easy for an investor from abroad to invest in a bank and hedge out the currency risk.
Investors are increasingly reluctant to bail out banks, not just foreign ones, and all banks are increasingly unwilling to lend to each other (not just foreign banks).
