FRANKFURT, March 24 ― A steep selloff in banking stocks hit European indices today as worries about the stability of the financial sector intensified, with the news of a US probe on Credit Suisse and UBS further souring the mood.
European banks fell 4.5 per cent and were set for their third week of declines, after the failure of US midsized lenders and the turmoil at Credit Suisse highlighted growing risks to banks in the wake of tightening financial conditions. Austria's Raiffeisen Bank International slipped 5.7 per cent after Reuters reported the European Central Bank is pressing the bank to unwind its highly profitable business in Russia.
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