There appears to be a confluence of 2-3 threads in the debate. Nothing unusual in that: The one in deep trouble tries to confuse matters by talking about something completely different.

  • 1)    The official press statement about a solution to the agricultural financing crisis has been postponed:
    http://www.business.dk/finans/bankpakke-5-er-skudt-til-hjoerne
  • 2)    The Central Bank has “adjusted” the interbank interest rates for last week. There is a marked deviation between what the Central Bank reported BEFORE and AFTER lunch.

Sorry haven’t translated; but the orange lines are the SECURED interest rates of 3 month maturity.

The dashed line is before lunch.

Now this is wild guesswork; but they occasionally are pretty close to the mark.

What probably happened was that Danske Bank and/or Nykredit desperately needed a considerable 3 month credit – and offered their own real-estate bond issues as collateral. This must have been met with a roar – rather tactless – from the creditors, so another solution has had to be found.

That must have involved calling the “bank-secretary” from an important meeting. Again Danske Bank has had an embarrassing “accident” on their way to the toilet.

Whatever it may be – ValueWalk readers will not be surprised. But that the papers calls it “Breaking News”? How can the totally expected development be a surprise?

The only connections between the two stories is one in time – and the fact that Danske Bank has been discontented with the agricultural solution (with the very low exposure to agriculture). Apparently it did not offer Danske Bank a handout.

One thing is to hit the “panic-button”; but some people has made it a bad habit to lean on it.

To end on quite another tack: It is peculiar to see the same amount constantly bantered around. In the case we are talking 30-40 bio. DKK.

  1. It was the amount (or rather 22 + billion that Danske Bank was caught short on december 30th 2011. Which leaves me suspect that Nykredit is responsible for the rest.
  2. 40 bio. DKK was the Danish deposit in the scheme to save the Greek Banks. No it was not the Greek banks; but Geek Bank.
  3. Now 40 bio. DKK has disappeared from the deposits into the Central Bank since Monday. There is a heavy shuffling of gold bars at the moment – but are they the same lumps of dead metal – erhh loans?