« An interesting distinction | Main | Lenders of last resort »

The funding glut

The Fed's finally managed to pour more money into the markets than they can soak up - yesterday's vastly increased TAF auction was undersubscribed. (Undeterred, the Fed's planning an entirely new intervention - in the commercial paper and unsecured lending markets.)
There's no sign of an easing in interbank lending costs - Libor rocketed up again today.
And there are reports that RBS, Lloyds and Barclays - the UK's three biggest banks - are calling for a £15 billion bailout. That's £15 billion each.
Warren Buffett is still sanguine, buying into GE despite rumours (via Felix Salmon) that it's on the brink of bankruptcy.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Risk 15% Limited Subscription Offer