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This is mr.
All right let's bring in now fox business's Liz MacDonald his talking about French banks of course have been in the headlines a lot recently.
Is you know -- obviously concerns about the capitalization.
And there exposure to sovereign debt.
But yet that's a good point and what you know its true same goes on Wall Street that -- speaks in dog whistles so that's what's going on in France because.
When we saw the money -- and by the way here's the back story and a European banks is even referring us to do not have the same levels of that the IC deposit insurance that we have the United States.
See saw an outpouring of cash.
That's a theory coming from European banks into.
And from US multinationals into our US banks this is I think new York -- you know -- that extra fee for deposits fifty exits the -- let me get that back at -- to it.
But when the money fund started.
Scale as scaling back and dialing back from European banks.
What did you see happening -- the French banks gyrate because the French banks are very exposed they get a lot of their short term lending.
Out of the money -- Societe Generale.
You know also BNP Paribas.
And then we're wondering -- -- mystery that's -- to the markets yesterday it was that Wall Street Journal reported a story that which of the European banks.
Took a half a billion dollars out of emergency facilities the FE CB's set -- right.
And so the word on the street was it was one bank up and we we're still trying to nail down what it boat was.
It got the New York fed involved because William -- of the New York fed put out a statement saying.
We are not treated -- -- European banks any different from US banks were not treating their US arms of the European banks differ from US banks.
So what we're watching though is who is accessed the most of the Federal Reserve's facilities during the last you know the less banking -- -- It was Dexia so we're trying to see -- -- we don't know and by the way now there's a new report out today.
That Credit Suisse reportedly.
That that was the rumor that they had made use of the yes dollar swap facility that the -- reservists set up.
Over -- with the Swiss National Bank but the word Credit Suisse that denying that report.
So what you're seeing now is uncertainty because of lack of disclosure which we had Fox Business have been fighting.
We have found a Fox Business that a lot of information.
Along with Bloomberg of what the Federal Reserve has been doing to help prop up overseas banks we're not seeing it now though because the Federal Reserve for the lag time and -- and then from.
And -- international banks have got a huge boost from -- right.
And now the president calls that money is being siphoned back to Europe but that cash reserves in the US and dwindling is that.
Essentially bolstering -- their books back in the parents home country.
Yeah that's right here in you know that's right and -- United States we flooded the zone amount of Federal Reserve would much as it's been criticized 2.3 trillion estimated.
Flooding the zone from the -- has served with liquidity.
But this is again and again on a liquidity crisis -- the solvency crisis so you know.
Again we see the market telling you the story we see the market delivering the narratives.
For example northern rock was that really the canary in the -- line.
Besides that early German bank net hypo.
You know that there -- -- -- collapsed essentially because again fears talks and dog whistles people got afraid and they took their money out because there's not a lot of deposit insurance -- northern rock.
And you know so -- there was a run so there's a lot of these prom that's a and is a run is happening now it apparently bank -- my.
Funds here in the US that they had been making any of them -- -- -- -- been making these moves long time and get it right sells off of the year European Bank yes that's right.
And they you know then it really it's sort of that I came in full -- in the month of July.
So this proceeds whatever the ECB is launching right now so that's the back story to what is going on.
Again I would say that more disclosure just tell the markets don't not with you through her facilities.
And is the you know we had a basically a fire brigade -- right now.
The criticism in Europe as they're coming out it with water buckets and health of water yep and that's saying -- -- setting aside the idiot value of the ideological battles about monitoring policy.
And you know -- him swapping and fiscal policy at the at central banks I mean you know is Europe but the task right.
That's well question politically and ultimately will have to have one agency issuing debt and backing the debt of and that -- three.
Groundbreaking only -- what some say -- have ridiculed -- idiotic.
To do that and Germany is fighting that -- apps like France right there in just -- -- lost desperate a little bit after that they are desperate that's not my slowed idiotic banker Tony.
I thought and that did as they Donald's thing are delighted it's idiotic thank you know what it's kinda put in place.
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