Unfortunately, we remain stuck in the cleanup phase so long as economists and their ability to direct policy continue to suggest the Great Recession was anything other than systemic revelation along these lines; a permanent rift between what was and what can be. It is and was never about oil; only now that oil projects volatility into the dying days of eurodollar leverage.
EU regulators have joined their counterparts in the US and Britain in probing the SSA market where banks may have colluded on price quotes. The big question is whether Deutsche Bank, which is struggling to reassure a nervous market, will find itself in the European Commission's crosshairs.
On Jan 28, the price of silver flash crashed. This irregularity occurred around the silver fix. The spot price was $14.40 but the fix was $13.58.
For the first time since 2012, Bafin - Germany’s banking regulator, which for a minute looked like it might actually accuse Anshu Jain of lying about LIBOR - has closed a bank. All financial transactions by Maple Bank of Canada’s German subsidiary have been halted due to "imminent over indebtedness."
Now that talking about NIRP in the US is no longer anathema but a matter of survival for market participants for whom frontrunning the Fed's policy failure has emerged as a prerequisite trade, the question is: what are the mechanics of NIRP, what are the implications of negative rates for US markets. Here is the handy answer
- World shares heat up as Bank of Japan goes sub-zero (Reuters)
- Stocks Rally With Bonds as BOJ Ends Grim January on High Note (BBG)
- Japan Follows Europe Into Negative Interest Rate Territory (WSJ)
- Decision On Oil Cut Only Possible If All Exporters Agree, Russian Energy Minister Says (BBG)
- Trump overshadows Republican debate even as he sits it out (Reuters)
- Trump skips debate, wins on social media (Reuters)
- Unease over Fed rate path dents European stocks (Reuters)
- Global Stocks Pressured After Fed Statement (WSJ)
- Japan's Economy Minister Amari to Resign Over Graft Scandal (BBG)
- Authorities working to clear remaining protesters in Oregon occupation (Reuters)
- China Sharpens Efforts to Halt Money Outflow (WSJ)
- Eurozone January Economic Sentiment Falls Sharply, Hits 5-Mth Low (MNI)
Here is precisely where the brand new gold vault of the world's biggest bank will be located.
"It was over. The guard led me into a room daubed in graffiti, with the faint smell of cigarettes and urine. He allowed me to use the toilet, but it had no door – the days of privacy and dignity were over. A plastic toilet with no seat. I couldn’t really comprehend it."
Banks have finally woken up to the risk their billions in C&I loans issued to fund "financial engineering" are exposed to. The reaction: an unprecedented surge in loan collateralization, with the percent of total loans secured by collateral soaring by nearly 50% in the past quarter to a record 55.9%, the highest ever!
- Battered oil wins respite, lifts stocks (Reuters)
- Oil Halts Decline as Emerging Market Stocks Climb on China (BBG)
- Bonds Set to Beat Stocks Globally in 2015 After China Falters (BBG)
- SpaceX Falcon rocket nails safe landing in pivotal space feat (Reuters)
- China Leaders Flag More Stimulus After Top Economic Meeting (BBG)
- SEC to Retrench Case Against SAC’s Steven A. Cohen (WSJ)
In what appears to be an orderly process, The NY Fed's first Reverse Repo operation since The FOMC 'raised' rates released $105.185 billion of Treasury collateral to 49 banks at a rate 25bps, draining the same amount of system liquidity. This is being greeted as good news by many as no major disprutions appear to have occurred... aside from, of course, a 6bps plunge in long-end bond yields, 250 point drop in The Dow, and notable weakness in high-yield bonds. While some had feared up to $1 trillion would need to be withdrawn to achieve The Fed's goals, the size of this initial RRP suggests there is considerably less excess liquidty in the system than many would believe... indicating a notably more fragile system than we are being led to believe.
Someone forgot to give the banks the memo that the Fed's first rate hike since 2006 was supposed to, at least on paper, benefit the savers of America and not so much the, well, banks.. Because the ink hadn't even dried on the Fed's statement and one after another banks revealed that they would promptly boost their Prime lending rate from the current benchmark of 3.25% to the new Fed Funds-implied prime rate of 3.50%.
The Big Banks manipulate credit default swaps to perpetrate economic terrorism against other nations in the world, where they literally destroy the economies of those victim-nations. It used to be a theory, but now the proof is finally emerging.