Belgian bank Dexia SA appears as though it is about to go under.
Details of a restructuring are being discussed at a Belgian government ministers meeting.
Rumors on the Street indicate that the Fed has exposure to the bank.
The Fed can paper over anything with more money printing, but the fact that the Fed may have lent money to the bank suggests that even more disclosures, from Ben's wild bailout the world adventure, need to be made.
I suppose I could have posted the following link on nearly any story on the EPJ but, I just happened to choose this one because of the relevance.
ReplyDeleteIt's either this, mises.org/daily/1423 ,or I'm going to solicit input from EPJ readers that may be able to recommend someplace with a decent climate and some other favorable conditions in South America for expatriation. I've just about had enough. Honest. Any suggestions folks?
Dexia was one of the largest discount window borrowers (if memory serves) in the 2008 panic. Looking at H.4.1, primary credit over the week ended Sep 28 averaged $29 B, but was $40 B on the day of Wed, Sep 28. Weekly avg for week ended Sep 14 was $19 B, with *$60 B* outstanding the day of Sep 14.
ReplyDeleteWonder if the Fed is accepting the stock of bankrupt companies as collateral this time around, as well.
Cannot be Dexia, as it is not a PD. Two new ones today, though:
ReplyDeleteBMO Capital Markets Corp.
Bank of Nova Scotia, New York Agency
One more flip flop: needn't be a PD to access discount window, so it could be Dexia.
ReplyDelete