China banks told to halt lending to US banks
Thu, 2008-09-25 18:32
#1
Frustrated Mess
China banks told to halt lending to US banks
Thu, 2008-09-25 18:32
#2
Frustrated Mess
quote:
Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
[url=http://www.reuters.com/article/marketsNews/idUSPEK16693720080925]Crash
[url=http://www.reuters.com/article/ousiv/idUSTRE48O2PZ20080925]Chinese Deny Calling for halt on lending[/url]
quote:
NANNING, China (Reuters) - China's banking regulator sought to reassure jittery financial markets on Thursday, denying a report it had told local banks to stop lending to U.S. banks and stressing that foreign bank operations in China were healthy."The CBRC has never, through any channel, issued a statement or told domestic commercial banks not to lend to or borrow from U.S. financial institutions," the China Banking Regulatory Commission said in a statement on its website.
CBRC Vice Chairman Wang Zhaoxing told Reuters that a report in the South China Morning Post, which said the agency had told Chinese banks to stop lending to U.S. banks in the interbank market, was not correct.
"If they are not willing to lend, this is the normal practice of risk control," said Wang, speaking on the sidelines of a major banking conference.
The CBRC later said the SCMP report was irresponsible.
Thu, 2008-09-25 19:50
#4
The Chinese trying to reassure financial markets? Eesh. Even they are under the thrall of the paper economy now. [img]rolleyes.gif" border="0[/img]
I think this is one of their duck and cover strategies. Notice how the guy said "We're not officially announcing this but wink wink nudge nudge and all that."
Thu, 2008-09-25 19:58
#5
ElizaQ
I don't think this is going to matter much right now. McCain the superaction hero swooped into Washington this afternoon to save the economy and may have just hooped it royally, at least in the short term. Another bank WAMU just went down this evening while the battle was happening. Markets may be interesting tomorrow.
Thu, 2008-09-25 20:32
#6
The US government dumped WaMu off onto JP Morgan, apparently. Should be fun to watch all the shareholders pissing and whining and moaning as though owning, in perpetuity, the profit stream of a company gave them a god-given right to that money instead of a privilege that can be withdrawn at will.