Oh shit. Reuters: China Banks told to Halt lending to US Banks

[npincus]

So, they won't bankroll our economy. our war, anymore. The shit hits the fan. Other countries to follow?

http://www.reuters.com/article/marketsNews/idUSPEK16693720080925

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.

A spokesman for the CBRC had no immediate comment.

[Spider Jerusalem]

1. And a reversal, of sorts, here:

China denies shunning foreign banks
Thu Sep 25, 2008 6:44am EDT

By Samuel Shen

NANNING, China (Reuters) - China's banking regulator sought to reassure jittery financial markets on Thursday, denying a report it had told local banks to stop lending to U.S. banks and stressing that foreign bank operations in China were healthy.

"The CBRC has never, through any channel, issued a statement or told domestic commercial banks not to lend to or borrow from U.S. financial institutions," the China Banking Regulatory Commission said in a statement on its website.

CBRC Vice Chairman Wang Zhaoxing told Reuters that a report in the South China Morning Post, which said the agency had told Chinese banks to stop lending to U.S. banks in the interbank market, was not correct.

"If they are not willing to lend, this is the normal practice of risk control," said Wang, speaking on the sidelines of a major banking conference.

The CBRC later said the SCMP report was irresponsible.

More: http://www.reuters.com/articlePrint?articleId=USTRE48O2PZ20080925

[endthewar]

6. China can't afford to do this. They have $1 trillion worth of our money.

If the US dollar tanks, so do the US treasury bonds China has.

[glowing]

2. Who will buy their crap if there is no money?

[doc03]

3. China has a Banking Regulatory Commission? If

we had some regulation we wouldn't be in this mess.

[BumRushDaShow]

4. This was in LBN but was updated to say that the Chinese deny ever saying this. n/t

[RichGirl]

5. I admit to not understanding the economy...but...

Why don't the wealthy in this country bail us out??? The oil companies have had huge profits, they could chip in. Insurance companies and everything health related has made huge bucks screwing us over...they could toss in a few billion. Why don't the Carly Fiorinas who have received a disporportionate amount of money in the past years do their share. There is something totally screwy about a system where the wealthiest people are treated like they are the neediest and they should not be asked to give a dime of their precious money!

[endthewar]

7. Because it's not human nature

People don't gather money just to toss it away.