Banks raise billions as credit crisis gets worse and liquidity is squeezed

Chirag Jain — Tue, 01 Jul 2008 09:07:48 +0000

This time its the turn of the European Banks to take the hit – and that right on their balance sheet!! Due to subprime mortgage, short-term lending is poised to rise again even as central bankers are pumping billions and billions of dollars into their businesses.

This may be summed as an ‘end-of-the-quarter‘ effect, where banks pump in a lot of cash to make their balance sheets look stable [even in the worst times] mainly to boost investor confidence and trump their competitors. Cold, hard cash is raised through a variety of processes, including international funding, and borrowing dollars from Americans (probably Federal Reserve…) and selling part-stakes (Merrill Lynch, Citigroup, Lehman Brothers did that last year to ADIA Sovereign Wealth Fund, and Bear Stearns sold itself fully to JP Morgan)

Hello world!

Chirag Jain — Tue, 01 Jul 2008 08:38:02 +0000

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!

Perfectscore's Weblog

Banks raise billions as credit crisis gets worse and liquidity is squeezed

Hello world!