New York Fed Swap Lines With Europe Increase By $390MM, Rise To $2.248BN

Tyler Durden's picture

The New York Fed has released its updated FX swap line data: while the USD line with the BOJ has been cut from $102 million to just $1 million, what is more disturbing is that the swap lines with the ECB increased by $390 million to $2.248 billion. This amount is split between $500 million in a 7 day line at 1.08% and the balance locked up in a 84 day swap at 1.09%, which is where the addition was found. And now we start getting the denials from European banks as to who it may have been to need rescue funding from the Fed via the ECB, and was unable to access USD Libor at a far lower rate.

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Mickey Oneil's picture




edit: oh yeah, silver bitchez!

trav7777's picture

these figures, 2.24B??  CHUMP CHANGE

mayhem_korner's picture



Not at the margin when liquidity is scarcer than hen's teeth. 

Tyler Durden's picture

So the bank that drew down will promptly step up and mock the fact that it needed a paltry $400 million right?

trav7777's picture

that's chump change...MF Global stole more than that in client funds, FFS

mayhem_korner's picture



Trav, u understand the difference between liquidity and invested capital?  Cuz there is one.

trav7777's picture is real and liquidity is manufactured from the CB's asses.

...and 2.4B worth of liquidity is chump change.

Compared to the size of swap lines in 08, this is nothing.

mayhem_korner's picture

capital is real and liquidity is manufactured


I know you don't believe that pablum.  When the chips are down, liquidity is what counts, and if you don't have it, you're out of luck.  Soon Wimpy will no longer be able to get a hamburger today and gladly pay next Tuesday.

MillionDollarBonus_'s picture

Agreed, but it's certainly a move in the right direction. I'm impressed to see Dr Bernanke taking the initiative as he has done in the past. Upholding the global economy will require proactive and courageous measures from world leaders and central bankers. Unlike libertarian doomers, some people still care about downtrodden countries like Greece and Italy. Global leaders will continue to save failing nations because they still have compassion. I for one believe in the human spirit, and I look forward to a prosperous and happy future.

mayhem_korner's picture



Tyler - how much of a contribution do I need to make to gain administrative priviliges to permanently blot out a poster's comments?  I'm not looking for the family pack, just a single shot.  :D

a growing concern's picture

There's this new thing called sarcasm.  

sqz's picture

I know the feeling, but actually MillionDollarBonus_ is a regular that all other regulars know exclusively posts sarcastic (but sometimes hilarious) comments :)

mayhem_korner's picture



Sarcastic I get.  Hilarious I'm still waiting on...

Everybodys All American's picture

This is such a stupid comment I don't know if your intellect can comprehend the ultimate failure that is coming.

Lux Fiat's picture

Looks like the resident ZH unicorn "passed" by your candy bowl, leaving some of those rainbow-colored skittles  behind.  They must have been pretty good.

Tyler Durden's picture

The hole for MF Global was $600MM. Just $600 MM. That's how much capital they stole from customers before realizing they have to close down shop on a firm with $35 billion in liabilities. 

In other news, Greek GDP is just 1% of Europe's. Why should ANYONE worry about Greece?

resaci's picture


Similar tricks in Italy?

Segregated accounts, we don't need no stinking segregated accounts!

Banks in Italy Find an Unusual Liquidity Lifeline

"With cash increasingly hard to come by, Italy’s banks are turning to CC&G, the exchange’s Italian clearinghouse, for short-term lending. That includes some of the country’s largest financial institutions, including Unicredit and Mediobanca, according to a person close to the situation.

Under terms of the deals, the clearinghouse, which acts as a middleman to guarantee trades between financial parties, is offering money to both Italian and European banks with a presence in Italy for up to three days.

The money, which comes from collateral that traders must put up to complete financial transactions, is deposited with the banks to cover shortfalls in liquidity. CC&G earns a profit by charging banks interest on the money that they borrow.

“Financial entities are making money in new and different ways,” he said. “Just because times are bad doesn’t mean they’re not looking for profits.”"


trav7777's picture

they shouldn't; they should kick Greece out of the eurozone

DarkAgeAhead's picture

As a guy who doesn't read the fiction that is economics, can someone elucidate me on how the Fed just opens and shuts these lines of credit without a word from anyone else?

Richard Chesler's picture

Bagholder of last resort.

It's just how the criminals designed the system.


Ragnar24's picture

You're confusing Keynesianism with economics -- the former is fiction, the latter is science.

DoChenRollingBearing's picture

LOTS of news today!  All of it bad.  Each time I start reading through a thread, up pops more news.  Next stop for the Bearing: Nigel Farage!

Sancho Ponzi's picture


'Bubblicious Ben's Central Banker Payday Loans'


paarsons's picture

We'll all just keep printing money.

That seems to be the solution.

SwingForce's picture

"Here assholes, buy stocks." Traitor Bernanke, disgusting.

ArkansasAngie's picture

Now guys ... don't y'all go giving our money to Europe.

And ... while we are on the subject ... don't take any American taxpayer money and give it to TBTF buddies of yours either.

sincerely ... pitchfork owner

disabledvet's picture

If this catastrophe isn't sorted out in the next 6 to 8 weeks I say the euro is replaced by either the dollar or the pound.

Black Forest's picture

Very close to my opinion. However it might take a bit longer, fifty or a hundred weeks.

apberusdisvet's picture

Selling out  US sovereignty 1 Billion at a time.

mynhair's picture

Swap lines to EU are like feeding dicks to Pam A.

A bottomless pit.

mayhem_korner's picture



Lunacy is approaching an apex.  An unauthorized institution lends someone else's money with a going-in understanding that this is a failed attempt to buttress a rapidly-cascading default, and does so at a rate of interest nowhere to be seen in the open market and without any rational justification of risk-return.

Can't anybody find a better use for $390 million of fake liquidity than to risk losing it for a mere $9 million?

OK - my rant is over.

trav7777's picture

it's just patching up an accounting sheet hole man, it's not like it's "real" money.  Chillax

Irish66's picture

That number 390 million rings a bell?

catacl1sm's picture

What happened to, Mila? BRING HER BACK!!!!

cymro33's picture

  - Everything is just fine!!                             

                                                                                                                                          GE Filed 57,000-Page Tax Return, Paid No Taxes on $14 Billion in Profits
mayhem_korner's picture



Whaddya think the lead partner auditing GE's books pulls down in a year?  I mean, besides Immelt's jockeys.

JPM Hater001's picture

I'd up arrow you twice if I could.

You know Immelt is from Milwaukee right?  That makes him and Obama neighbors growing up.

mynhair's picture

Milwaukee was moved to Indonesia?

Plus, prove the ODummer is, or ever has been, growing up.

Misean's picture

Maybe if they made it $1T for 10 years at 0%....

vast-dom's picture


vast-dom's picture

"Boring" is not only intrinsically boring AND redundant, it's fucking retarded and a waste of space!

Black Forest's picture

I do not fully agree, Sir.

vast-dom's picture

Then you do not have to be compelled to publicly opine and come off as a jerkoff.


My black friday comment is predicatated on actual calcs and the probabllity is certainly most excellent for it, EUROZONE fuckery and machinatations and manipulations notwithstanding.



Black Forest's picture

Significant amounts of fuckery, manipulations etc. in some euro and other zones have become common knowledge. For this simple reason, any trustworthy or random forecast of black Mondays, Tuesdays, ..., Fridays is therefore EXTREMELY boring for me because a week has seven days.

vast-dom's picture

So boring that you are compelled to comment? Interesting. Perhaps you may want to find another hobby other than posting jerkoff? And why not check back tomorrow to confirm a 3%+ US market drop?

Black Forest's picture

Sir: Just fucking wankers care about a 3 per cent ES sell-off on a so-called Black X-day.

Buy physical.



vast-dom's picture

The true wanker is the one proclaiming they don't care about x,y,z. Don't be such a fat girl at the dance. If you don't care, then simply spend time opining on that which you do care about. 

yogibear's picture

Bernanke is the wizard of OZ. Don't look behind the curtain because it's stinky.