Oh, FUCK. BOOM! China Banks Told to Stop Lending to US Banks

[debbierlus]

I am told that this is not current. I am looking for a link to verify that - however, I do not want to spread inaccurate info, so a caveat - unverified as of now.

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)



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

Wall Street is going down in flames tomorrow.

:nuke:

[Marrah_G]

1. OMG

tommorrow is gonna be BAD

[DJ13]

2. China said this morning that they issued no such order

It was stated on CNBC.

[knowbody0]

3. OMG

the end truly is near.

[Spider Jerusalem]

4. Denied by the China Banking Regulatory Commission; see below

China denies shunning foreign banks
Thu Sep 25, 2008 5:46am EDT

(Adds CBRC warning on avoiding contagion from financial crisis)

By Samuel Shen

NANNING, China, Sept 25 (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.

MORE: http://www.reuters.com/articlePrint?articleId=USSHA17536520080925

[vaberella]

12. Woohoo...I take my words back!! The market won't fail tomorrow. n/t

You always save the day Spider Jerusalem. Thanks for giving us this news.

[liberal N proud]

5. And the house of cards falls completely to the ground

[msallied]

6. This country is officially in the economic toilet.

And China just flushed...

[FreakinDJ]

7. Like you thought that WASN'T the Root of the Problem

Just like Bush to blame the Mortgage holders when in reality China has been quietly dumping dollars, advising it's Asian economic trading partners to do the same thing, and patiently waiting for the day when they could do the most damage

Bail them out all you want - it ain't gonna make a bit of difference

[AZBlue]

8. This is completely false. Please update your OP so as not to spread fear without basis.

[qanda]

9. ...

[vaberella]

10. Okay..well. I take back my statement about 2 week plan. We are fucked!

I figured we had international companies on our side. But this doesn't look good.

[Mojambo]

11. Has the loss tomorrow just gone from three figures to four? n/t

[barack the house]

13. ...

...

[depakid]

14. How many times does a debunked rumor have to be repeated

for some to realize?

I'll say one thing- it's impressive.

[Kurt_and_Hunter]

15. Don't be TOO worried yet, because the Reuters story is not

on the first page of their financial section. So they're not presenting as big at the moment.

It's Reuters repeating a story in one newspaper, without confirmation.

So it might not be official.

Or it might.

[debbierlus]

16. My Original Post will NOT edit. I have tried to change it TWICE. SO I WILL POST CORRECTION HERE

Sorry folks.

I tried TWICE to edit the post, but it won't edit! A note to DU, I have had problems with editing posts all week.

My apologies for the thread. I have tried to fix it, but it won't work!