Ok, this is very weird.
The BIS Basel monitoring report is just out, and it has this very boring chart.
Yeah, yeah, we get it, Covid, bla bla bla, governments put so much money on the table that they bailed out the entire economy and there was almost no default.
BUT WAIT. 1/2
The BIS Basel monitoring report is just out, and it has this very boring chart.
Yeah, yeah, we get it, Covid, bla bla bla, governments put so much money on the table that they bailed out the entire economy and there was almost no default.
BUT WAIT. 1/2
That's the same chart for bank exposures, i.e. exposures banks have on other banks.
WTF did happen????
WTF did happen????
The report has this cryptic footnote
"(25) The marked increase for bank exposures is due to a significant increase for one large bank."
WHICH BIG BANK(S) WENT BUST IN Q4 2020 WITHOUT TELLING ME??????
"(25) The marked increase for bank exposures is due to a significant increase for one large bank."
WHICH BIG BANK(S) WENT BUST IN Q4 2020 WITHOUT TELLING ME??????
And guys, I love them as much as you do, but no it's not Deutsche, it's not Debit Suisse and it's not Monte Paschi😃
So far my best guess is Baoshang Bank - which is interesting because it suggests that the failure of just one Chinese bank tripled the amount of defaulted interbanking liabilities worldwide.
@BaldingsWorld
@BaldingsWorld
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