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

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.

Comments

[buzzsaw99]

buh buh buh bennie and the inkjets bitchez!

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

[trav7777]

Europe needs lots of dollar

[gitenjit]

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[janus]

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.

[janus]

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

[Alienated Serf]

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?

[ReactionToClose...]

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

[Alienated Serf]

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? 

[ReactionToClose...]

lumber  & GBP futures up?

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

[Cromwell]

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

[Stuck on Zero]

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

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