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Lack Of Offshore Dollars Reflected In Widest Spread Between SocGen And JPM Libor Fixing Since Early 2009

Tyler Durden's picture




 

Further to the previous post speculating that while central planners do all they can to mask the symptoms of the European-wide liquidity crunch, the underlying issue is still very much alive, comes from the observations that the past two days' Libor fixing spread between a stable, domestic provider of 3 Month USD Libor and a less than stable one, shall we say, SocGen, has surged to the widest since early 2009. Granted, everyone knows that LIEBOR is the most manipulated unsecured funding metric available as it comes directly from the BBA member banks themselves (a process which is currently being investigated by regulators), but the fact that even post all the massaging SocGen has been unable to collapse the spread is very notable, and confirms that its stock price is purely a kneejerk reaction to this morning's short selling ban, one which as we demonstrated envisions lots of pain once the first reaction is internalized.

 

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Fri, 08/12/2011 - 09:16 | 1553844 buzzsaw99
buzzsaw99's picture

buh buh buh bennie and the inkjets bitchez!

http://www.youtube.com/watch?v=r2qoxiDj3gI

Fri, 08/12/2011 - 11:25 | 1554345 trav7777
trav7777's picture

Europe needs lots of dollar

Fri, 10/07/2011 - 22:04 | 1751918 gitenjit
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Fri, 08/12/2011 - 09:30 | 1553880 janus
janus's picture

so the market opens in 30 secs....just in time for safety flight to US equities in 3..2...1...let's see if janus is right.

Fri, 08/12/2011 - 09:31 | 1553885 janus
janus's picture

yup, i thinks i'm startin to get the hang of this.  no, i didn't cheat and look at futures.

Fri, 08/12/2011 - 09:33 | 1553889 Alienated Serf
Alienated Serf's picture

LIEbor indeed.  The swiss banks are by far the biggest liars on this one.  but then all the rest have to follow.  you can't look weak by reporting a higher rate to BBA then your buddies.  credit suisse was reporting the lowest LIEbor during the crisis, but then needed the most cash, uh i mean currency swaps from the fed...

you can't blame credit suisse though, they were just doing what the SNB told them to do.

word on the street is that FSA was investigating some brit banks for this, then FSA was abolished and it was taken over by the BOE...  haven't heard much since then huh?

 

 

Fri, 08/12/2011 - 09:37 | 1553900 ReactionToClose...
ReactionToClosedMinds's picture

funny you bring that back up ... heard same thing from Swiss banking colleague ...

Fri, 08/12/2011 - 09:48 | 1553931 Alienated Serf
Alienated Serf's picture

wow, there are still other people here who actually know what is going on?  i thought ZH had gone 100% looney.

all this fixing was done on the orders of the central banks, so i don't think there are going to be any consequences.  can you imagine DOJ charging FED employees? 

Fri, 08/12/2011 - 09:35 | 1553897 ReactionToClose...
ReactionToClosedMinds's picture

lumber  & GBP futures up?

I know, FTSE 100 has great 'yield' now relative to Treasuries ... but lumber?

Fri, 08/12/2011 - 09:39 | 1553903 Cromwell
Cromwell's picture

Yeah I saw this on Bloomberg First Word Fixed Income right at 653

Fri, 08/12/2011 - 09:40 | 1553907 Stuck on Zero
Stuck on Zero's picture

If bank CEOs received their bonuses in stock options that matured over twenty years you wouldn't see reckless management.

Sat, 08/13/2011 - 02:40 | 1556578 yang46
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Mon, 08/15/2011 - 00:00 | 1560583 MGHJFHD
MGHJFHD's picture

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Mon, 08/15/2011 - 00:00 | 1560585 MGHJFHD
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