Barclays PLC (NYSE:BCS) (LON:BCS) leave the CIBOR panel.
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
According to the Danish Bankers Association today Thursday August 2nd 2012
The Danish Bankers Association now only has 7 banks left in the panel – and two foreign: Deutsche Bank AG (ETR:DBK) (NYSE:DB) and Nordea – and with the pressure Deutsche Bank AG (ETR:DBK) (NYSE:DB) is under it might be a matter of time before they will announce their time is occupied elsewhere!
The Danish Bankers Association has:
That means: Apart from Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY), there is only pathetic jokers left.
This raises the question what will happen to all the thousands of loan agreements where the interest rate is fixed by the CIBOR – among those some of the real estate mortgage bonds.
It has little credibility that Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY) can continue to do as they please – especially in the light of the Central Bank instituting the CITA interest rate. An interest rate fixing that has been underway for about a year.
If the CIBOR just ceases to exist there will be a lot of loan agreements that must be considered null and void. In practice, CIBOR might very well continue as a simple rebranding of the CITA – just to avoid a legal mess.
The interesting question is how long Nordea can retain a Danish bank licence: Being part owned by the Swedish state the ability to influence something as vital as Central Bank interest rates might be considered as being in very poor taste – especially as very little trade is liable to be conducted in CIBOR.
It seems to be a trend that non-Euro banks are being told to leave the zone. Sydbank has dismantled their Swiss subsidiary f.i.