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:
- 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.
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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.
- 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.
- 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.
- 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?