The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Thursday August 16 – Crescendo of panic

We've got hedge funds who are saying, 'Look, we have been in business for ten years and we've paid $500 million in fees and commissions to Wall Street and you can't give us a couple of days?' We are getting a lot of blunt decisions made by people far away from these markets and some of them are bad decisions. If someone comes down from the 40th floor and tells us not to accept a certain class of collateral or counterparty, we're not going to disagree"

The week Wall Street went into meltdown


melt-clipping5.gif

It’s getting very ugly out there. Euromoney’s day starts with the head of the repo desk at one of the leading Wall Street firms, an experienced banker whose face can’t long disguise the exhaustion and strain.

What’s happening? "Even the people at the Fed and the ECB don’t get what’s happening. Firms are almost closing down the doors. They’re refusing to finance any more collateral from their existing clients than they did previously, just when unsecured short-term funding is closing down and more collateral is coming out. And they won’t finance collateral even of the best quality from clients they have not previously dealt with. Think about that. We’ve got hedge funds who are saying ‘look, we have been in business for 10 years and we’ve paid $500 million in fees and commissions to Wall Street and you can’t give us a couple of days?’


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree