Olympia & York's Canary Wharf bankruptcy filing this week in London gives U.S. bankers another reason to think twice before lending abroad.

Few needed convincing. Overseas lending by U.S. banks fell by $2.7 billion last year, to $711.6 billion, according to the Bank for International Settlements. But there had been signs of a pickup toward yearend - and the bankruptcy of the huge development in London's Docklands area may halt the rebound.

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