Posted on 09/25/2008 12:04:31 AM PDT by kms61
BEIJING, Sept 25 (Reuters) - 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.
The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)
(Excerpt) Read more at reuters.com ...
Of, course a worthless dollar will provoke these kinds of reactions.
Our illustrious financial leaders have been acting like two-bit crooks who have been caught running a con on a rival mob. After watching the testimony earlier in the week, I told my husband that they (and we) had been very explicitly threatened with some sort of dire consequence.
Looks like the CBRC is now denying it:
China denies telling banks not to lend to US banks
Thu Sep 25, 2008 12:49am EDT
BEIJING, Sept 25 (Reuters) - The China Banking Regulatory Commission (CBRC) on Thursday denied a newspaper report that it had told Chinese banks to stop lending to U.S. banks in the interbank market. A spokesman for the regulator strongly codemned the article in Thursday’s South China Morning Post, calling it irresponsible.
“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 spokesman said in a statement on the agency’s website. (Reporting by Langi Chiang and Zhou Xin; Writing by Alan Wheatley; Editing by Ken Wills)
http://www.reuters.com/article/marketsNews/idUSBJC00020520080925
KM,,,I got an e-mail over two hours ago about a bank run in
Hong Kong,,,
I’ll be pullin’ Cash when the bank opens,,,
If I Can!,,,
1929 with the brakes on,,,JMHO...
~~~CYA~~~
Cuban missile crisis being played out in the stage of global financial market?
Likely both, here is a bit more info from an even fresher article an hour ago:
UPDATE 1-China banks cut back lending to foreign banks
Thu Sep 25, 2008 2:19am EDT
By Lu Jianxin and George Chen
SHANGHAI, Sept 25 (Reuters) - Some Chinese banks have cut lending to foreign banks in China’s interbank money market because of the global financial crisis, but trade continues and foreign banks remain able to operate, traders said on Thursday.
Dealers at over half a dozen Chinese and foreign institutions, who declined to be named because of the sensitivity of the issue, said U.S. and some other foreign banks were finding it harder to borrow from the market.
[SNIP]
The China Banking Regulatory Commission (CBRC) on Thursday denied a report in Hong Kong’s South China Morning Post that the CBRC had told Chinese banks to stop lending to U.S. banks in the interbank market. It called the report wrong and irresponsible.
“If they are not willing to lend, this is the normal practice of risk control,” CBRC vice chairman Wang Zhaoxing told Reuters.
A dealer at a major Chinese state-owned bank in Beijing said: “We are not aware of any official restrictions, but we have halted lending to some foreign banks because of risk controls.” (Additional reporting by Samuel Shen) (Writing by Andrew Torchia; Editing by Jonathan Hopfner)
http://www.reuters.com/article/marketsNews/idUSSHA34453320080925
To me, it looks like the CBRC did indeed tell the banks to stop lending, but it wasn’t supposed to be “official”.
Figures.
Could this be classified as “We ‘made’ them” now “They can ‘break’ us”?
Don’t forget the ‘panic’ that took place back in the day when the Japanese were ‘buying’ up all our properties in NY and elsewhere?
Guess the Chinese don’t want to risk going down the same road Japan did.....
>>The other shoe dropping?
Queen takes rook. Check.
I hope the Chinese enjoy their Century as much as we enjoyed ours...
I am no conspiracy theorist, but it seems like they are looking good now.
Jonathan
Trial Balloon maybe?
Ping
I heard earlier yesterday that it was simple financial terrorism by Paulson, et al.
If the ChiComs want to go this route, maybe we can reciprocate by banning their poisonous and toxic imports across the board.
Of course that would require balls of steel in Washington on both sides of the aisle, so we might as well start shopping for those Mao suits and enjoy our one bowl of rice a day.
“I hope the Chinese enjoy their Century as much as we enjoyed ours...”
Without the American consumer it’s not going to start out as a great century for anyone. We are going to come out of this just fine, but it’s going to hurt first.
I hadn't thought of it in those terms - but it does have a ring of truth to it.
If we are in fact doing this bailout to appease the ChiComs, it's important that it's made public on a wide scale.
If China is forced to very publicly deny it, it will show who is really in the driver's seat.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.