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.