Behind The Scenes Liquidity Scramble In Europe? One Bank Borrows $500MM In Emergency Cash From ECB

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 08/17/2011 - 09:46 | 1568612 hugovanderbubble
hugovanderbubble's picture

Societe Generale ----remember those losses in derivatives books close to 200.000 Mn.Euros....

Au revoir Socgen

Credit Agricole

UniCredito

Intesa San Paolo

Wed, 08/17/2011 - 09:52 | 1568676 spiral_eyes
Wed, 08/24/2011 - 15:07 | 1596210 hbjork1
hbjork1's picture

Thanks for the link. 

Too bad Paul didn't have more time.  The Bernak classified gold as an asset but if it can be classified as a fungable asset then it is a money using formal definitions of money.

Wed, 08/17/2011 - 10:04 | 1568705 trav7777
trav7777's picture

icanhaz $500M at 1.1%?

Wed, 08/17/2011 - 11:53 | 1569046 Nobody special
Nobody special's picture

Is the 1.1% interest rate based on a 7 day borrowing term as it appears?  If so, 1.1% @ 7 days = an annual compounded rate of 78.5% interest.  That's not exactly a faith inducing rate.

Wed, 08/17/2011 - 10:08 | 1568718 hugovanderbubble
hugovanderbubble's picture

Remember that...

Asian banks has cut credit line facilities to SOC GEN LAST WEEK...

 

So my bet is SOCIETE GENERALE IS CLOSE TO DEFAULT and will be sold off into pieces.

Wed, 08/17/2011 - 10:12 | 1568727 Fish Gone Bad
Fish Gone Bad's picture

+1

Wed, 08/17/2011 - 11:43 | 1568993 Ahmeexnal
Ahmeexnal's picture

soc gen must hold on until the short ban ends

Wed, 08/17/2011 - 09:34 | 1568614 Irish66
Irish66's picture

Tender date today?

Wed, 08/17/2011 - 09:36 | 1568619 Paralympic Equity
Paralympic Equity's picture

That must be the same bank that borrowed 4 billion EUR overnight some days ago, and the 1 billion EUR yesterday.

Wed, 08/17/2011 - 09:36 | 1568620 Global Hunter
Global Hunter's picture

Extra post points for using the word stigmata in an article.  Bring on Stigmata!!! For all those who like a little early 90s shoegazing muzak!

http://www.youtube.com/watch?v=a8fjPxt_OBg&playnext=1&list=PL4BBCE2A8C12...

 

Wed, 08/17/2011 - 09:36 | 1568621 Everybodys All ...
Everybodys All American's picture

Is this Fed funded?

Wed, 08/17/2011 - 09:37 | 1568626 speconomist
speconomist's picture

ECB.

Wed, 08/17/2011 - 09:41 | 1568636 whirlybird rules
whirlybird rules's picture

probably...  keep shorting dollars vs euro... makes no sense, but the trade makes money.    remember, Ben has the American people's interest front and center...  ahahahahahaha...   wild times :(

Wed, 08/17/2011 - 09:47 | 1568658 toady
toady's picture

The bernak is treasonous.

Wed, 08/17/2011 - 09:50 | 1568670 Chump
Chump's picture

Ohhh...you better say sorry for your rhetorical inflammation!  Tsk tsk, speaking that way about the CHAIRMAN OF THE FEDERAL RESERVE!!!

Wed, 08/17/2011 - 09:46 | 1568656 MFL8240
MFL8240's picture

Of course it is silly!

Wed, 08/17/2011 - 09:36 | 1568622 sabra1
sabra1's picture

i'm going with Reggie's call that it's a french bank!

Wed, 08/17/2011 - 09:37 | 1568625 speconomist
speconomist's picture

Time for another EURCHF short?

Wed, 08/17/2011 - 09:38 | 1568629 pendragon
pendragon's picture

eveyrything's fine. look at the euro

Wed, 08/17/2011 - 09:44 | 1568651 whirlybird rules
whirlybird rules's picture

..  the SMP has been good for at least another $5B since the important Merk/Sark announcement since yesterday, $3B of that was for the opening bell of the European bourses.  when you think of the alternative, this is cheap!!! at least until it stops working... :(((

Wed, 08/17/2011 - 09:57 | 1568688 pendragon
pendragon's picture

it's a low bar for using the smp. last week it was to prevent meltdown. this week trichet just fancied it.

Wed, 08/17/2011 - 09:39 | 1568634 Translational Lift
Translational Lift's picture

More to come I would imagine........

Wed, 08/17/2011 - 09:47 | 1568635 Cleanclog
Cleanclog's picture

Could be an Austrian bank.  They are very exposed to imploding Hungarian housing where mortgages are denominated in Swiss Francs, not Euros, so you can imagine the havoc that wreaks on balance sheets.  Unless, like our banks, they don't really need to mark to market.

Wed, 08/17/2011 - 09:58 | 1568689 DaBernank
DaBernank's picture

I vote that it is my bank, Bank Austria, which is actually Unicredit. Massive numbers of mortgages in CHF here in Vienna and in Hungary.

Wed, 08/17/2011 - 10:46 | 1568717 BurningFuld
BurningFuld's picture

People in Austria borrowed in Swiss Francs? Excuse my ignorance but why?

Wed, 08/17/2011 - 11:01 | 1568836 vocational tainee
vocational tainee's picture

It was very popular in austria and other countries like hungary, to buy swii mortgage loans at inter banking rate (1,5 % )plus premium (0,5%)for the lokal austian bank.In times of financial peace ,quite cheap and intresting.But now ,with the swissie going up 37% financial suicide..

Wed, 08/17/2011 - 10:17 | 1568735 hungarianboy
hungarianboy's picture

huh? We can get sign a new contract and you just have to pay 180 fixed for the coming three years.

ok maybe some interest rate and what ever after the three years but again as usual, kicking the can down the road. Seems like the Hungarian PM learnt good from other countries :-)

Wed, 08/17/2011 - 09:41 | 1568639 Smiddywesson
Smiddywesson's picture

Oui,

illiquid croissant munching bitchez!

Wed, 08/17/2011 - 09:41 | 1568640 youngman
youngman's picture

Keep on this stat...this will show the future...I would be taking my money out of the banks too....actually did....years ago...its just a place for a credit card for me..

Wed, 08/17/2011 - 09:42 | 1568644 doomandbloom
doomandbloom's picture

Twitter fight between Roubini and Tyler....biff, pow!

Wed, 08/17/2011 - 09:44 | 1568650 SheepDog-One
SheepDog-One's picture

Roubini....FED butt-boy.

Wed, 08/17/2011 - 09:48 | 1568662 doomandbloom
doomandbloom's picture

Roubini is going all out now...i think he might cry soon

Wed, 08/17/2011 - 10:00 | 1568696 doomandbloom
doomandbloom's picture

Max Keiser joining in now...this is good...

Welcome to Fight Club guys..

Wed, 08/17/2011 - 10:00 | 1568697 DaBernank
DaBernank's picture

I had to unfollow @nouriel on twitter, couldn't stand the full retard shit he was spewing.

Wed, 08/17/2011 - 10:15 | 1568730 Village Smithy
Village Smithy's picture

Maybe someone has stolen his iphone and is impersonating him. Nice undergrad prank.

Wed, 08/17/2011 - 10:28 | 1568761 vast-dom
vast-dom's picture

very interesting twitter scuffle. why? bc no one can hide behind static acedemic papers and corporate reports in real-time exchange which allows for facts, charts and tweets.

fight!

 

 

Wed, 08/17/2011 - 11:21 | 1568909 OpenEyes
OpenEyes's picture

I finally unsubscribed to his newsletter.  He seemed to be on the right track around 2008 but somebody seems to have bought him off in the meantime.

Wed, 08/17/2011 - 09:43 | 1568647 SheepDog-One
SheepDog-One's picture

Well hey bankers gotta eat too!

Wed, 08/17/2011 - 09:44 | 1568652 swissaustrian
swissaustrian's picture

500 Million isn´t a big deal though...

Wed, 08/17/2011 - 09:46 | 1568655 SheepDog-One
SheepDog-One's picture

Nah! Chump change, just banker walkin-around money. Banker gotta get his croissant on.

Wed, 08/17/2011 - 11:13 | 1568869 Manthong
Manthong's picture

Half a trillion?

Hardly enough for a Swiss Big Mac anymore.

Wed, 08/17/2011 - 09:45 | 1568653 disabledvet
disabledvet's picture

I'd laugh if it was Bank of America.

Wed, 08/17/2011 - 09:46 | 1568654 hungarianboy
hungarianboy's picture

Maybe they took more than needed to kick the can further down the road for the rest of the year. Maybe that's the reason for the uber huge amount? Is this possible? If so then rally on!

Wed, 08/17/2011 - 09:47 | 1568657 ZeroPower
ZeroPower's picture

Chart is in EUR, allotment in USD.

Wed, 08/17/2011 - 09:49 | 1568661 SheepDog-One
SheepDog-One's picture

New ZIRP world order.....banks just get handed as much interest free cash as they want.

Well hey as long as .01% of the worlds people are doing better than ever, thats all that really matters.

Wed, 08/17/2011 - 09:58 | 1568693 toady
toady's picture

.000001%

Maybe your population numbers were off in the calculation...

Wed, 08/17/2011 - 09:49 | 1568668 PulauHantu29
PulauHantu29's picture

$500 Million? Out of nowhere?

Doesn't that mean the ECB (or the Fed) just printed that money?

Wed, 08/17/2011 - 10:06 | 1568711 trav7777
trav7777's picture

no, they lent it.  But, no, it didn't exist prior to its conjuring via magic

Do NOT follow this link or you will be banned from the site!