This chart from an Espirito Santo report shows a 2-D matrix of liquidity (i.e. liquid assets as a % of
wholesale funding assets), versus reliance on wholesale funding – the
one component in European interbank markets which is now completely
dead. Needless to say red is bad. And if Dexia is in trouble then it is time to call a priest for Soc Gen, BNP, Raiffeisen,
and DnB Nor.