Jim’s Mailbox

Posted at 10:47 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Banking issues slowly creeping into public view.

Certainly most are aware of Deutsche Bank’s $50 trillion derivative exposure and the roughly $6.40 share price target that people say could trigger a panic.  Currently DB is trading $6.88

However, problems don’t necessarily have to be relegated to the majors.

Remember Credit – Anstalt?

 

 

 

 

 

Run Louis (Louis Nathaniel de Rothschild)! Run!

CIGA Wolfgang Rech

PBOC Panics, Floods Market With Liquidity As Interbank Funding Freezes After Baoshang Seizure
May 29, 2019

With China’s bond market continues to be hammered in the aftermath of the government’s surprise seizure of Baoshang  Bank (see “A Big Wake Up Call”: Chinese Bond Market Roiled By First Ever Bank Failure”), the PBOC – whose open market operations had been in dormancy for much of 2019 – finally panicked and on Wednesday injected a whopping net 250 billion yuan ($36 billion) into the financial system via open-market operations, as it fills what traders have dubbed a growing funding gap following the Baoshang failure.

 

 

 

 

 

 

 

 

The consequences of this liquidity flood were instant: China’s overnight repurchase rate, a measure of interbank liquidity, tumbled the most in three weeks, while the benchmark 7-day repo rate also declined.

 

 

 

 

 

 

 

 

More…

Americans’ Life Savings Wiped Out In Mexican Bank Fraud Scheme
May 29, 2019

A Bloomberg report reveals how a Mexican bank employee directed a retirement fraud scheme at American retirees living in San Miguel de Allende, a city in Mexico’s central highlands.

 

 

 

 

 

 

 

 

 

Monex Casa de Bolsa SA de CV Monex Grupo Financiero has been investigating allegations that an employee stole approximately $40 million from American clients.

Marcela Zavala Taylor, the suspected Monex banker at the center of the fraud, allegedly sent American clients falsified statements that showed their accounts were fully funded, said several of the bank’s clients in a Bloomberg interview.

The fraud was discovered in late December when clients couldn’t retrieve funds from their accounts. Bank officials told clients that $40 million in funds from 158 accounts disappeared.

Bloomberg spoke with several clients who said Monex attempted to reach settlements at a massive discount versus what was stolen from their accounts. Others said the bank asked them to file charges against Zavala.

More…

 

Jim/Bill,

This headline says it all…….

Stocks Slammed As Credit Cracks, Retail Routed, Yield Curve Craters

Looking at the news items over the last 24 hours makes you wonder…..is there anybody we aren’t picking a fight with?

CIGA Wolfgang Rech

Russia Slams “Crude Provocation” Nuclear Testing Accusations By US

China Accuses US Of “Naked Economic Terrorism,” Will “Fight Until The End”

Chinese Activists Urge War With US ‘Until Pacific Ocean Splits In Two’ 

Iran’s Oil Exports Plunge To 400,000 Bpd In May

Trump Risks New Front In Trade War As Talks With Europe Falter

US Threatens Europe With “Loss Of Access To US Financial System” Over SWIFT-Evading Iran SPV

US Troops To Be Based In Saudi Arabia, Qatar Against “Iran Threat”

Footage Captures Arms “Rat Line” On “Mysterious Planes” Fueling Libya War 2.0