China banks told to halt lending to US banks

[w¡n9Nµ7 §£@¥€r 123]

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.

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.

http://www.reuters.com/article/marketsNews...K16693720080925

[alienlovechild 75]

Does that mean we suckered the Chinese with bad investments like we did the Japanese in the 90's?

[w¡n9Nµ7 §£@¥€r 123]

Does that mean we suckered the Chinese with bad investments like we did the Japanese in the 90's?

I beileve Krugman put it well: "They sell us poisoned toys and tainted sea food and we sell them fraudulent securities"

[Pinocchio Liberal 268]

I heard it being reported as a rumour but I cant find it.

[w¡n9Nµ7 §£@¥€r 123]

I heard it being reported as a rumour but I cant find it.

URL is at the bottom of the first post.

[metta 0]

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.

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.

http://www.reuters.com/article/marketsNews...K16693720080925

Not surprising after the Germans got suckered by Lehman ..

Germany’s dumbest bank.”

Two board members and a junior manager at German state owned lender KfW have been suspended over the transfer of 300 million euros to Lehman Brothers just hours before the US investment bank filed for bankruptcy protection.

There is huge embarrassment at the bank and in the German government. The country’s finance and economy ministers sit on KfW’s board.

Financial expert Wolfgang Gerke said: “You can only laugh about KfW. It is just unimaginable that somebody accidentally transfers 300 million euros to a company that is on brink of bankruptcy, and that information was already well known. A transfer like this has to be confirmed by the bank’s top bosses, even if it is a routine matter.”

The press had a field day with the mistake; one headline read: “Germany’s dumbest bank.”

There is outrage and disbelief among ordinary Germans. One man said: “Stupid! Really stupid! And we’re all paying for it. There are 80 million Germans, 300 million euro, that’s four euros each.”

The bank’s total loss – through that automatic transfer and other deals with Lehman Brothers – has been calculated at 536 million euros.