Thursday, October 11, 2007

Signs of trouble for Russia’s banks

Disclosures from the Central Bank of Russia (CBR) on Wednesday reveal widespread liquidity trouble for the Russian banking system. The CBR announced a package of measures to stave off trouble; lowering minimum reserve requirements and accepting credit as collateral. It disclosed a $277m loan to state-controlled VTB, which itself is said to be in talks to buy three troubled consumer lenders. The CBR said it had been pumping about $2.5bn into the system every day via one-day repo auctions since late September, registering a net private capital outflow of $9.4bn in the third quarter of 2007 compared with a capital inflow of $52.7bn in the previous quarter. The CBR also warned that refinancing demands could rise to $12bn-$15bn per day in October and November.

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.