The Global Liquidity Bailout Arrives: World Central Banks Announce Global Dollar Shortfall Funding Resolution

Tyler Durden's picture

Remember that dollar liquidity crunch Zero Hedge has been covering for the past month? Here is the denouement, in the form of the first global liquidity bailout of the world for 2011, on the 3 year anniversary of the Lehman collapse.

ECB Announcement:

15 September 2011 - ECB announces additional US dollar liquidity-providing operations over year-end

The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These operations will be conducted in addition to the ongoing weekly seven-day operations announced on 10 May 2010. The schedule for these additional operations is as follows:

Tender date Settlement date Maturity date
12 October 2011 13 October 2011 5 January 2012
9 November 2011 10 November 2011 2 February 2012
7 December 2011 8 December 2011 1 March 2012

These will all take the form of repurchase operations against eligible collateral and will be carried out as fixed rate tender procedures with full allotment. Further information on tender procedures can be found on the ECB’s website.

Information on related announcements by other central banks is available on the following websites:

Bank of England:

Bank of Japan:

Swiss National Bank:


SNB Announcement:

The Swiss National Bank (SNB) has decided, in coordination with the Bank of England, the Bank of Japan, the European Central Bank and the Federal Reserve, to offer US dollar liquidity with a term of 84 days to cover the end of the year. These tenders will be conducted in addition to the 7-day operations. The first 84-day US-dollar liquidity operation will be carried out on 12 October 2011. Further information about the US dollar operation and the technical requirements are posted on the SNB website (

BOE Announcement:

In coordination with the European Central Bank, the Swiss National Bank, the Bank of Japan, and the Federal Reserve, the Bank of England is today announcing that it will conduct three US dollar tenders, each at a term of approximately three months covering the end of the year. These tenders will be in addition to the ongoing weekly 7-day tenders of dollar funding announced on 10 May 2010.

As before, these operations will be at fixed interest rates with counterparties able to borrow any amount against eligible collateral. The first tender will be held on Wednesday 12 October. Further details can be found in the Market Notice at

US dollar repo operations are subject to the terms of the Sterling Monetary Framework Documentation as supplemented and amended by the Supplementary Terms, which can be found on the Bank of England website at The US dollar term repo operations use the Narrow and Wider OMO Collateral pools, details of which can be found at

BOJ Announcement:

The European Central Bank, the Bank of England, and the Swiss National Bank have today announced the introduction of three-month U.S. dollar funds-supplying operations covering the year end.

The Bank of Japan has so far continued to conduct weekly one-week U.S. dollar funds-supplying operations and monthly three-month U.S. dollar funds-supplying operations. In coordination with those central banks and the Federal Reserve, the Bank of Japan announces here an additional schedule for a three-month U.S. dollar funds-supplying operation covering the year end.

Further schedule will be notified as decided.

1. Operational time table

2. Auction schedule (An auction on October 18, 2011 is added)

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LRC Fan's picture

Wtf is going on?

EscapeKey's picture

Full economic spectrum manipulation.

Expect crackdowns on "financial freedom" in the name of "preventing economic terrorism".

IBelieveInMagic's picture

Man the swap lines pumps -- this is a Category 5 hurricane!

hedgeless_horseman's picture

It's raining everywhere in the world but Texas.


PS:  09-14 16:48: US Senator Reid says will do a China currency bill quickly

...because those chi.coms are such currency manipulators.  We definitely need to bomb them.

john39's picture

fulford is a source of misdirection... none of the government stooges are going turn on their masters.  they will lick boots to the bitter end.

thetruth's picture

maybe he is a source of misdirection.  i'd be happy to read any documentation you have on that, if it's available

Stockmonger's picture

He wrote of the "311 nuclear tsunami attack" on Japan.  Got tinfoil hat?

pebblewriter's picture

I was hoping aliens were somehow involved...

Oh regional Indian's picture

Holy M Oly! This has to be the biggest can kick attempted yet.

So, no dollar shortages means no dollar ramp? That means Japan is saved? Eur/USD steadied? SNB decision makes perfect sense in this scenario?

How do we take the controllers to task? Who takes them to task? 

And Au/Ag? Watch, Au is doing the slide while Ag is holding a little better. Whut is up? 

Crazy. Really not worth "trading" this market, how can you account for such intervention? 

Go on, take your money and run!


Tipping Points

sushi's picture

And the markets jump up!

This is like having every fire truck in the county arrive at the door of your apartment building and the clown on TV is saying this is good news.

Bwahaha WAGFDSMB's picture

But, when the building is on fire, fire trucks showing up IS good news.

Chuck Walla's picture

Really now, who's going to arrest George Soros?

Scottj88's picture

A Den of Vipers and Thieves they all are.... welcome to history repeating itself once again.

Gentleman, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank.

You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!

You are a den of vipers and thieves.

Andrew Jackson, (7th US President, when forcing the closure of the Second Bank of the US in 1836 by revoking its charter)

EscapeKey's picture

Yeah, I like the 2nd bank of the US history; I always compare Bernanke to Biddle when discussing Keynesians, but obviously, it's "totally different this time". They also usually refuse to discuss the origins of the 3rd bank of the US.

Anyway, just off Marketwatch;

"9:10a Moody's Italian downgrade seen as likely"


Predictably, the market doesn't take notice.

Scottj88's picture

When you say the market doesn't take notice, do you mean the algorithms have not yet been turned on?

I did it by Occident's picture

9:10 to Yuma?

Reminds me of that movie 3:10 to Yuma.  Good movie, but it's looking like things will end like in the movie.  Most people die and the bad guy gets away. 


oobrien's picture

Good citizen of Metropolis!

Here's my opinion.

Fuck. Shit. Fuck. Shit.

Now you can take that advice to the bank!

LeBalance's picture

Endless printing and don't say a !!!!!!! word about it!

It's OK and that's the Law!

I did it by Occident's picture

Why are Ag and Au down 3%?  Something's not clicking. 


mantrid's picture

Just as described by Jefferies and ZH:



The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country.

Ah, 4 already running, 13 more to go...

Cassandra Syndrome's picture

They never learn. Hyperinflation is a certainty.

LookingWithAmazement's picture

The banks get dollars - crisis over.

Bicycle Repairman's picture

Another kick of the can.  The underlying problems remain.

udecker's picture

It works each time they've done it, so why stop now?

maxmad's picture

oops!  Looks like the manipulated BS rally is almost over already!  We finish lower on the day!

EscapeKey's picture

May one ask what constitutes "eligeble material"? Shares in Lehman Bros at 2007 peak price?

Hansel's picture

Papers... business papers... also there were some Creedence tapes...

WmMcK's picture

Big wheel keeps on turning ...

unky's picture

is that the reason for the EUR/USD spike?

EscapeKey's picture

That was probably due to the Greek crisis being solved once and for all a few days ago (for the 3rd time).

GoldmanBaggins's picture

One step closer to the solution.

SeverinSlade's picture

I wish I could get a bail out whenever I had a liquidity problem. 


semperfi's picture

The bailouts will continue until morale improves - or the shooting starts - whichever comes first.

Sophist Economicus's picture

I've got some bad receivables I'd like to monetize.  Can I get in line too?

LookingWithAmazement's picture

PMs down - crisis over. Told you so.

HelluvaEngineer's picture

Right.  Cause infinite money printing is bearish for metals.

LookingWithAmazement's picture

Who says it goes to the PMs? Apparently not.

Ricky Bobby's picture

Only real savings go to PM's. Play money goes down the UBS affirmative action rabbit hole.

falak pema's picture

Kweku Adoboli is now destined to be as famous as Didier Drogba the footballer. Or Jerome Kerviel his fellow scammer.

Some rabbit holes are lined in tungsten gold. During the spell in prison he can write his memoirs.

Bicycle Repairman's picture

Not today.  How long will this 'stick save' last?