Online:
Visits:
Stories:
Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

55 Trillion Reasons Why Bank Of New York And State Street Better Not Get Any Ideas From China

Tuesday, December 9, 2014 15:36
% of readers think this story is Fact. Add your two cents.

(Before It's News)

from Zero Hedge

While everyone knows the direct consequence of China’s tinkering with collateral rules last night led to the biggest Chinese stock market crash in years, not many understand what caused this. In a nutshell, what China did was severely curb its shadow banking industry, when China’s securities clearing house said it raised the quality threshold for corporate bonds qualifying as collateral for repurchase agreements, or repos, which are short-term loans with maturities spanning from overnight to 182 days. And since the proceeds of such repo deals are usually used to purchase stocks, suddenly a major source of “dry powder” for Chinese stock buying was violently and unexpectedly yanked away.

Continue Reading at ZeroHedge.com…



Source: http://financialsurvivalnetwork.com/2014/12/55-trillion-reasons-why-bank-of-new-york-and-state-street-better-not-get-any-ideas-from-china/?utm_source=rss&utm_medium=rss&utm_campaign=55-trillion-reasons-why-bank-of-new-york-and-state-street-better

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.