The Corporate Bank Run Has Started: Siemens Pulls €500 Million From A French Bank, Redeposits Direct With ECB

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Mon, 09/19/2011 - 15:46 | 1685814 Irish66
Irish66's picture

market doesn't care

Mon, 09/19/2011 - 15:49 | 1685837 BigJim
BigJim's picture

And why would they? The ECB will just turn around and use this money to buy bonds... issued by the bank Siemens has just pulled it out of. At 40:1 leverage.

Mon, 09/19/2011 - 15:52 | 1685857 redpill
redpill's picture

I'm sure the momos would say the death of SocGen is already priced in.

 

Until it isn't!

Mon, 09/19/2011 - 16:16 | 1685986 I think I need ...
I think I need to buy a gun's picture

turbo timmy was just on bloomberg and everything is strengthened in the united states so there is no need to worry

Mon, 09/19/2011 - 16:18 | 1685996 redpill
redpill's picture

Oh good, then it must be a good time to raise taxes by $1.5 Trillion.

Mon, 09/19/2011 - 17:16 | 1686207 clymer
Mon, 09/19/2011 - 18:12 | 1686338 macholatte
macholatte's picture

Back to Basics

Here's the question the sheeple need to start asking......

If X is a sovereign country then it should have the power to coin its own money. So why does it "borrow" anything from anyone?

 

 No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking.
J. P. Morgan

Tue, 09/20/2011 - 07:58 | 1688061 Are you kidding
Are you kidding's picture

To keep them from coining too much too fast.  It's all borrowed from the taxpayers labor.  It's like the SCOTUS is supposed to keep the laws Congress passes in check.  Theoretically, they would tell the Congress...no, you've already borrowed too much...you'll have to wait until you've paid that other thing you "just had to have" back first. 

Mon, 09/19/2011 - 17:15 | 1686201 LawsofPhysics
LawsofPhysics's picture

Yep, and none of these banks are undercapitalized, especially BAC.  Now where have I heard this all before?

Mon, 09/19/2011 - 16:16 | 1685987 I think I need ...
I think I need to buy a gun's picture

turbo timmy was just on bloomberg and everything is strengthened in the united states so there is no need to worry

Mon, 09/19/2011 - 16:04 | 1685926 Belarus
Belarus's picture

SocGen: 50x leverage to be exact. 

Mon, 09/19/2011 - 16:08 | 1685951 King_of_simpletons
King_of_simpletons's picture

>> somehow the ECB has become a direct lender of only resort to private non-financial institutions

What is new in this ? We make the rules as we go. Ask the Fed and the last five Treasury Secs.

 

 

Mon, 09/19/2011 - 16:11 | 1685962 redpill
redpill's picture

Of course is there any real difference in the end?  They won't let SocGen fail.  And I wonder how many execs there have also worked at the ECB, and vice versa?

Mon, 09/19/2011 - 16:21 | 1686013 Careless Whisper
Careless Whisper's picture

SCGLY   who (besides the boyz from jersey) ever heard of a bank that trades on the pink sheets?

Mon, 09/19/2011 - 18:02 | 1686318 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

The company’s move came almost a year after Europe’s largest engineering conglomerate prepared itself for a future financial crisis by launching its own bank

 They launched a bank a year ago, that makes them a financial institution.  Increasing their deposits with the central bank could mean they're looking to expand their banking business.  Nothing to see here, move along.

Mon, 09/19/2011 - 18:08 | 1686276 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

That's right BigJim.  Let's get the facts straight people- when you trade paper for paper, the status quo remains.  That is, of course, until inflation eats away at the fiat standard.

You want a real run on the system? 

BUY SILVER

Mon, 09/19/2011 - 15:56 | 1685886 IQ 145
IQ 145's picture

It's a very significant development and good reportage; I reported here a couple of days ago that WSJ Live from London was carrying this as a story; "various, "large; Euorpean corps. removing funding from large French Banks. Giant Sucking Sound. Not good. Possibilitiy market will care big time; waiting and watching.

Mon, 09/19/2011 - 16:12 | 1685968 redpill
redpill's picture

Who wants to be the last one out?

Mon, 09/19/2011 - 16:45 | 1686090 tekhneek
tekhneek's picture

How long does it take to print 500 million euros anyway... An hour?

Mon, 09/19/2011 - 17:17 | 1686143 baby_BLYTHE
baby_BLYTHE's picture

according to Benocide the ills of too much money printing can be reversed in 15 mins. The initial printing is instantaneous and of no concern to a central banker

Mon, 09/19/2011 - 18:21 | 1686365 macholatte
macholatte's picture

How long does it take to print 500 million euros

 

ask Switzerland

 

Every crowd has a silver lining.
P. T. Barnum

I did everything by the seat of my pants. That's why I got hurt so much.
Evel Knievel

I got a kick out of having a big bankroll in my pocket. Even if I only made a couple hundred dollars, I'd always keep it in fives and tens so it'd look big.
Mickey Cohen

No one is entitled to the truth.
E. Howard Hunt

 

Mon, 09/19/2011 - 16:20 | 1686010 readytoleave
readytoleave's picture

Yep ---

I knew the big corps were moving their money ---  But i've got to be honest  --- i never thought they would (could) move directly to the ECB.  Where do I sign up for my account at the fed???

 

 

Mon, 09/19/2011 - 16:47 | 1686097 Translational Lift
Translational Lift's picture

Great place to put your $ if you never want to see it again.......Oh yea...I forgot they print $ don't they!!

Mon, 09/19/2011 - 18:12 | 1686340 Prometheus418
Prometheus418's picture

You have to incorporate as a bank- as the article notes Seimens did.

Which is not actually a terrible idea, if you have a lawyer that is willing to arrange it for you.  It is not even necessary to have clients outside of your own family- if you do it correctly, it is possible to incorporate a family bank with FDIC insurance and become a member (however minor) of the Fed.  If you can get that far, you can use the discount window and create your own loans with fractional deposits at the Fed rate- far cheaper than using an outside bank, but you would need to use it enough to justify the legal and accounting expenses associated with maintaining the corporation.

Of course, the odds of getting a 1% reserve are pretty slim if you are not one of the big boys, but even a 25% deposit rate would allow you to print your own money on demand.

All that being said, I would imagine that the process is not as easy as it sounds, and I'm sure you have to have a sizeable amount of capital to begin with.

Mon, 09/19/2011 - 16:24 | 1686023 kito
kito's picture

did they move the money out of fear, or because the ecb is offering higher deposit rates?

Mon, 09/19/2011 - 16:57 | 1686139 New_Meat
New_Meat's picture

"teaser rates"

Mon, 09/19/2011 - 19:52 | 1686690 Isotope
Isotope's picture

With the ECB, they get "Europoints." Watch them grow, cash them in for valuable prizes and travel rewards.

Mon, 09/19/2011 - 21:29 | 1687029 Ahmeexnal
Ahmeexnal's picture

I bet even DSK has his money out of french banks.

Mon, 09/19/2011 - 16:03 | 1685923 LeonardoFibonacci
LeonardoFibonacci's picture

I agree.....NO DOOMSDAY TODAY!!!!

Mon, 09/19/2011 - 16:04 | 1685930 TruthInSunshine
TruthInSunshine's picture

RoboTarder considers today a 0.8% gainer, since the U.S. markets closed 0.8% up off of their intraday lows.

RoboTarder is killing it.

Mon, 09/19/2011 - 16:04 | 1685931 Stoploss
Stoploss's picture

Holy Shit..

Mon, 09/19/2011 - 16:08 | 1685950 P Rankmug
P Rankmug's picture

Neither does the Honey Badger.  It doesn't give a shit.

http://www.youtube.com/watch?v=4r7wHMg5Yjg

 

market doesn't care

Mon, 09/19/2011 - 17:05 | 1686169 Gator8
Gator8's picture

Cash is Trash, accumulate Gold, next target is 2200 in the short term, medium term 2500!!!!!!! Any Comments appreciated

Mon, 09/19/2011 - 17:46 | 1686279 saulysw
saulysw's picture

Define "short term" and "medium term"

Mon, 09/19/2011 - 15:46 | 1685815 SheepDog-One
SheepDog-One's picture

But there was a phone call! Didnt Siemens get the word that all is well?

Mon, 09/19/2011 - 16:05 | 1685934 Mactheknife
Mactheknife's picture

Of course all we heard was the Greek version of that conference call...oh yeah somebody cue the riots.

Mon, 09/19/2011 - 15:46 | 1685817 Black Forest
Black Forest's picture

You may call this European Integration.

Mon, 09/19/2011 - 16:11 | 1685963 So Close
So Close's picture

Disntergration

 

Mon, 09/19/2011 - 16:20 | 1686000 redpill
redpill's picture

Divided we stand and united we fall?  That should be the EU's slogan.

Mon, 09/19/2011 - 15:46 | 1685819 YesWeKahn
YesWeKahn's picture

Hmmm, I wonder I should deal with ECB directly instead of WFC.

Mon, 09/19/2011 - 15:47 | 1685821 GeneMarchbanks
GeneMarchbanks's picture

The story of how SocGen was nationalized... {yawn}

Mon, 09/19/2011 - 16:03 | 1685919 Nate H
Nate H's picture

also the beginning of the story of how EVERYTHING private (ie for profit) will be nationalized..

Mon, 09/19/2011 - 18:37 | 1686424 NotApplicable
NotApplicable's picture

But they had to do something! The childrens!

Mon, 09/19/2011 - 15:47 | 1685824 ZeroPower
ZeroPower's picture

How about that ES. Not making anyone in credit much happier today though :/

Mon, 09/19/2011 - 15:51 | 1685851 firstdivision
firstdivision's picture

Credit is happy and running normal.  Equities on the other hand have offically suffered brain damage.

Mon, 09/19/2011 - 15:56 | 1685885 ZeroPower
ZeroPower's picture

If by happy you mean generally wider, with ugly spreads, and really small clips going off...then yes. All is not ok in bond-land either.

Mon, 09/19/2011 - 15:58 | 1685896 IQ 145
IQ 145's picture

They're not Canadian Womens; how can they be truly happy ? No seriously; yes.

Mon, 09/19/2011 - 15:48 | 1685825 Long-John-Silver
Long-John-Silver's picture

They should have purchased physical Gold with it. Not one single Bank in the world is safe.

Mon, 09/19/2011 - 15:49 | 1685833 mayhem_korner
mayhem_korner's picture

Maybe the ECB is their gold broker.

Mon, 09/19/2011 - 16:01 | 1685910 IQ 145
IQ 145's picture

that brings to mind an old English Sarcasm; "And the Best of British Luck to you, Lad". Bout all you could say to someone thought the ECB represented Gold Stabilized Currency.

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