China banks told to halt lending to US banks - South China Morning Post

[steve2470]

http://www.reuters.com/article/newsOne/idUSPEK16693720080925

Wed Sep 24, 2008 9:52pm EDT (added time of Reuters report on edit)

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.

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.

"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.

A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)

end of article

[Newsjock]

1. That's gonna leave a mark!

Or a euro, perhaps.

[Recursion]

2. Oh s**t

That's bad.

[steve2470]

3. Update: China denies shunning foreign banks

http://www.reuters.com/article/ousiv/idUSTRE48O2PZ20080925

Thu Sep 25, 2008 6:44am EDT (added time of news report on edit)

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.

more at link above

My apologies, I saw the first report and panicked a bit. Then I just saw this report.

[whistle]

4. This is the credit crunch Bush was referring to, China?

[smiley_glad_hands]

5. Good. Lets stop buying their shit. n/t

[TwixVoy]

8. As if that matters

who will want worthless dollars once the world figures out we are broke?

[steve2470]

6. 2nd update: China banks cut back lending to foreign banks

Thu Sep 25, 2008 6:07pm EDT

http://www.reuters.com/article/governmentFilingsNews/idUSSHA34453320080925

SHANGHAI (Reuters) - Some Chinese banks have cut lending to foreign banks in China's interbank money market because of the global financial crisis, but trade continues and foreign banks remain able to operate, traders said on Thursday.

Dealers at over half a dozen Chinese and foreign institutions, who declined to be named because of the sensitivity of the issue, said U.S. and some other foreign banks were finding it harder to borrow from the market.

A number of Chinese banks have temporarily stopped offering new lending to U.S. banks in yuan and other currencies, because of uncertainty about risk, three traders said. Similar caution in lending has been seen in markets around the world.

"We have had difficulty borrowing money from Chinese banks since the start of this week," said a dealer at the branch of a U.S. bank in Shanghai.

However, he and others said U.S. institutions had not been completely cut off from access to funds.

more at link above

[MadrasT]

7. Here we go... fasten your seatbelts, kids. n/t

[Fovea]

9. To fight the war on terra at this point

we will have to have a command economy.

We will fix the value of the dollar to the value of a ton of CO2 credits.