Fannie Follow Up: Change In Lending Rules To Non-US Financials Leaves Ten Banks In The Cold
Courtesy of Tyler Durden
The latest on the Fannie situation, via Market News:
Traders said that amidst all the rumors, market sources have cited a Fannie Mae business change that was said by sources to involve Fannie Mae restricting its non-US-bank lending in the fed funds rate market to the following list of 10 banks (US banks not
changed): Deutsche Bank, ING, BNP, Barclays, Lloyds, RBS, Scotia, Ntl Bank of Canada, RBC and Toronto Dominion. Thus it would be “substantially reducing” its list of banks by “what was thought to be dozens” of banks, said a trader; it appeared there was no reason given.
However Mkt News has not seen this letter but this is what we are led to believe by several market sources at different banks. Sources also stressed that this was not believed a credit-related event but more rather a tidying up so to speak of the balance sheet exposures such as perhaps removing unused credit lines that would a contingent liability.
And also some of the names not on the list were also said to be of top credit quality, said sources.