Pushing on a String − the LIBOR Conundrum - FXstreet.com The Futures Market- Topic: How Does Money Lending Interest Work
They inexplicably did not go off in the trash bin, allowing the fire to blaze on garbage and grease, but the heat rising set off the sprinklers in the trash chutes on higher floors, causing a lot of smoke as the water fell onto the trash, with the smoke escaping into the stairwells. Loan losses were up in most of the major loan categories (residential loans, home equity lines of credit, construction and development loans, and nonresidential property loans). HSBC’s SIVs have more than $34 billion of senior debt according to Moody’s, making it the second largest bank sponsor of these ill-begotten vehicles after Citigroup (which is facin g the prospect of adding about $40 billion of SIV assets back onto its balance sheet). The Super-SIV being put together by Citi, JP Morgan, and Bank of America will take some of that paper, but a lot of the rest is going to end back up on the books of the banks which sponsored them, or investors are going to take serious losses in what they thought was short-term AAA commercial paper. A money market fund run by the state of Florida for its various pension funds, county governments, schools, and other government enterprises has suspended redemptions after $27 billion of a 42-billion-dollar fund has been redeemed in just 30 days, as news of problems spread. The structured security market is in a freeze, which is the funding source for much of the credit in the US and the world for such everyday things as car loans, credit cards, student loans, commercial bank loans, commercial mortgages, and construction. Learn more
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