In what is becoming a common occurrence in the securities and investing world, a top bank has bailed out a struggling division with a huge cash injection. Dresdner Bank has bailed out its K2 fund to repay all of its senior debt because of the funds incredible $32 billion loss last year.

What does this signal for the entire European market as a whole? It shows that Europe needs to be on high alert as the US continues to struggle and the recession takes hold. When the largest economy on the planet takes a massive trillion dollar hit, its no surprise that other markets around the world are going to feel similar downturns.

I can’t wait to what else comes out of the European investment banking market this year.