China asks local lenders not to lend to U.S. banks:report [Archive]

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LabMonkey

09-25-08, 12:51 AM

http://www.marketwatch.com/news/story/china-asks-local-lenders-not/story.aspx?guid={389CCD2E-9D08-4A8B-A512-F1B3E0B0BE19}&dist=hplatest (http://www.marketwatch.com/news/story/china-asks-local-lenders-not/story.aspx?guid=%7B389CCD2E-9D08-4A8B-A512-F1B3E0B0BE19%7D&dist=hplatest)

HONG KONG (MarketWatch) -- Chinese regulators have asked domestic banks to stop lending to U.S. financial institutions in the interbank money markets to prevent possible losses during the financial crisis, the South China Morning Post reported Thursday. The China Banking Regulatory Commission's ban on interbank lending of all currencies applied to U.S. banks, but not to lenders from other countries, the report added, citing a source. http://i.mktw.net/mw3/News/greendot.gif

marvenger

09-25-08, 01:04 AM

A sudden stop it is!

$#*

09-25-08, 01:05 AM

Hot capital outflows through disguised loans ? It's getting very interesting, but I don' think it would work. Do yu remember how the oligarch in Russia got their money out ? Disguised loan payments or disguised loans to the western banks. The chinese know their lesson.:D

Tulpen

09-25-08, 01:09 AM

LabMonkey

09-25-08, 01:13 AM

Whew, got some more time to prep. Wonder if that was a warning shot across the bow.

LabMonkey

09-25-08, 01:24 AM

Is there a way to edit the title? Maybe I'll just delete it so the forum isn't cluttered.

$#*

09-25-08, 03:55 AM

Is there a way to edit the title? Maybe I'll just delete it so the forum isn't cluttered.

Just don't write any more messages on this thread and it will fall to the bottom of the page.

If you are able to understand the concept of getting rid of this thread please reply here.

If not, I will repeat my message. We have to be sure we are on the same page and we are doing the right thing. (You know ... like Bernanke and Paulson) :D

c1ue

09-25-08, 08:33 AM

I already noted in the Select section that this is, if real, more likely a reaction to the Ifw currency swap with Lehman mess.

No more free money in failed reciprocated swaps with a US bank declaring Chapter 11?

Hot capital outflows through disguised loans ? It's getting very interesting, but I don' think it would work. Do yu remember how the oligarch in Russia got their money out ? Disguised loan payments or disguised loans to the western banks. The chinese know their lesson.:D

Totally wrong, unless you can show some proof.

Money was taken out by separating payments from order fulfillment. Companies buying raw materials basically just sent money where they were told - the Caribbean via the Bank of New York.

Later on the preferred method was buying soccer teams and selling out to multinationals.

LabMonkey

09-26-08, 01:27 PM

Hmmm looks like the South China Morning Post was too early.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=alJJx6wybqMc

Domestic banks are cutting trading with international firms in the interbank market, according to Zhuang Zhiqiang (http://search.bloomberg.com/search?q=Zhuang+Zhiqiang&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), a trader at Xiamen International Bank Co., which is partially owned by the Asian Development Bank. The move aims to control risks after the bankruptcy of Lehman Brothers Holdings Inc. stunned domestic investors, said Zhao Qingming (http://search.bloomberg.com/search?q=Zhao+Qingming&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), an analyst in Beijing at China Construction Bank Corp., the nation's second-largest lender.
``We've turned more cautious,'' said Zhuang, who is based in the southern Chinese city of Xiamen. ``Bank officials are worried about settlement risks as the ongoing crisis has weakened people's trust in U.S. banks.''