Have no idea what the impact of this might be other than to give leverage to those crying for the bailout to happen by tomorrow:
http://www.reuters.com/...
Could someone who knows please diary on this?
BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
And guest what--the Chinese are targeting US banks only:
The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
Think they've had enough?
"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
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Down in the comments el cid provides this update from China sources that now denies the earlier report. Whipsaw!
China denies shunning foreign banks
Thu Sep 25, 2008 6:44am EDT
By Samuel Shen
NANNING, China (Reuters) - China's banking regulator sought to reassure jittery financial markets on Thursday, denying a report it had told local banks to stop lending to U.S. banks and stressing that foreign bank operations in China were healthy.
"The CBRC has never, through any channel, issued a statement or told domestic commercial banks not to lend to or borrow from U.S. financial institutions," the China Banking Regulatory Commission said in a statement on its website.
CBRC Vice Chairman Wang Zhaoxing told Reuters that a report in the South China Morning Post, which said the agency had told Chinese banks to stop lending to U.S. banks in the interbank market, was not correct.
"If they are not willing to lend, this is the normal practice of risk control," said Wang, speaking on the sidelines of a major banking conference.
The CBRC later said the SCMP report was irresponsible.
Update from Tommy James and the Shondells Roe: [h/t DamnThatOjeda]
I'm so dizzy, my head is spinnin'
Like a whirlpool, it never endin'
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from kurious down in the threads:
Kurious links to an essay at docudharma with more information about bank troubles and China that occurred YESTERDAY:
You may have seen a short news clip of the huge lines outside of Bank of East Asia offices in Hong Kong. Already it's the biggest bank run since the one that resulted in the nationalization of Northern Rock in the UK last year, a lot earlier in this mess.
Société Générale has told its customers to dump their stock holdings in China-related firms, pronto?
SocGen--Société Générale--is the sixth largest publicly-traded company in France by market capitalization and the third largest bank/financial services company in the whole Eurozone.
Update from Carol King:
I feel the earth ... move ... under my feet.