Was the support announced during the week by the Fed, ECB, BOE etc a result of a news that a major European bank was about to fall and be the first domino?  Well, stories by ZeroHedge and the DailyMail both suggested that this was the very reason. The fear of a domino affect prompted action from the Central Banks as liquidity dried up.

ZeroHedge reports as follows

Need a reason to explain the massive central bank intervention from China, to Japan, Switzerland, the ECB, England and all the way to the US? Forbes may have one explanation: “It appears that a big European bank got close to failure last night.  European banks, especially French banks, rely heavily on funding in the wholesale money markets.  It appears that a major bank was having difficulty funding its immediate liquidity needs. The cavalry was called in and has come to the successful rescue.”

The Daily Mail today reported

The emergency operation – led by the U.S. Federal Reserve with the support of the Bank of England – was launched amid fears that at least one major European bank may be teetering on the brink of collapse.

Another interesting point made in the article was of the consequences of bank failures across Europe as UK’s exposure is massive.
governor Sir Mervyn King issued a dire warning about the threat posed to Britain by the euro crisis – because our banks have more than £500billion tied up in European institutions.