Oil Falls on European Divisions, Fed Report of ‘Modest’ Growth

Business Week reported that crude oil plunged after France and Germany differed in their proposals to raise the European bailout fund and the Federal Reserve reported “modest” U.S. economic growth prospects.

As quoted in the market news:

A Franco-German split on the role of the European Central Bank in leveraging the euro bailout fund emerged at an event in Frankfurt today to mark the conclusion of Jean-Claude Trichet’s term as the ECB’s president. The disagreements among policy makers came as banks lobbied against forced recapitalization and deeper writedowns on Greek debt.
The Beige Book survey, released two weeks before each policy meeting, is based on information gathered by officials at the Fed’s 12 regional banks. Today’s report covers information collected on or before Oct. 7 and was compiled by staff at the Chicago Fed.

Click here to read the full Business Week report