Role reversal as blue-chip firms bail out Europe’s ailing banks

BLUE-CHIP names like Johnson & Johnson, Pfizer and Peugeot are among firms bailing out Europe’s ailing banks in a reversal of the established roles of clients and lenders.

One source with knowledge of the so-called repo deals or short-term secured lending, said the two US pharmaceutical groups and the French car maker were the latest to sign up for them.

Europe’s banks are struggling to secure cash to fund their day-to-day business and have largely stopped lending to each other for fear Europe’s sovereign debt crisis could land any of their peers in trouble.