Major Overnight Bank Loan Failure

The Market Oracle reports that major overnight bank loan failure.

(emphasis mine) [my comment]

Breaking News: Imminent Big Bank Failure on Overnight Bank Loan Failure
May 13, 2009 - 10:19 AM
By: Nadeem_Walayat

Jim Willie of the Hat trick Newsletter has just sent an urgent message of a potential imminent big bank failure that would be expected to hit the financial markets hard - message as follows -

Just got word from a reliable source with an excellent track record he calls me every several weeks when he has something very critical to share. He wants me to put the word out and to see what comes back to confirm or add to the story.

an extremely large overnight bank transaction loan failed last night, gathering major attention. It started in US west coast, went to Hong Kong, then Singapore, then London. It failed in London, by that is meant no return was given on the overnight loan.

He guessed the size was something like $10 to $30 billion
He suspected (without much direct evidence) that it was Citigroup
He believes the failing bank is a London subsidiary for a giant US-based bank
He likened it to a plumbing blockage with extreme backup consequences
He expects a ripple effect to cause shock waves, or a flood of sewage
we wondered if it could have Commercial Paper consequences, since often used in overnights
He has five expert friends watching for specific market reactions, like LIBOR

so be on the lookout
in February, this source said that in May June timeframe, foreign creditors will put the screws to the US bankers, who are recognized as totally corrupt [very interesting]
foreigner big bankers want to remove some power levers from US control

my source remains anonymous
/ jim

Harvey Organ's blog reports more about this failed overnight loan.

The failed overnight loan that was stopped in London, turned out to be Yellowstone and it was stopped at only 3 billion dollars. It seems cash is diasappearing down a sinkhole:

Jim Willie on that failed bank trade...

thanks, to you and your friend Greg
the failed inter-bank trade that started in US, went to Hong Kong, then Singapore, and got hung up in London has been identified.
it was Yellowstone and it was $3 billion
I had guessed $10 to $30 billion
if any further details, pass them on

My reaction: I have no way of verifying this story, so take it with a grain of salt. That said, I too believe that the US financial system will begin its final collapse in the "May June timeframe".

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5 Responses to Major Overnight Bank Loan Failure

  1. Anonymous says:

    So, watch out to the FX markets. Deflations of the money bubble are occurring…… These will to be repeated to creat a sudden Yellowstone blow up. China guesses 28 trillion of CDO will burst in or before July???

  2. Anonymous says:

    stay out of ETFs, or make sure you read the prospectus with a magnifying glass. The screws will be put all investors if there is a major market dislocation due to derivative unwinds. ETFs are the last vehicle you would want to be in... IMO.

    On the other hand, Jim Willie (faux name) is always sounding the alarm bell, and has been for some time. Its like the boy crying just never know. He supposedly lives in Costa Rica sitting on a pile of silver. I'm sure he's anxious as ever for a market implosion. I have zero respect for authors of this type who have abandoned their country and provide "advice" or information under a faux name.

    What does he have to hide that he does not want to use his real name.

  3. Anonymous says:

    Who is Yellowstone? Yellowstone Bank in Montana?

  4. Anonymous says:

    Eric, I can't believe you published that drivel from Jim Willie. Willie had no formal economic traning and his calls for the collapse of the US Dollar and a gold and silver rise during last years defltionary market collapse, fell flat on it's face.

    Gold and silver collapsed and the dollar rallied.

    Suddenly, he's resorted to wild, serial "predictions"?

    His "sources" told him about a secret internal Bank of America memo, and he predicted an imminent nationwide bank holiday.

    There was no memo. And no bank holiday.

    His secret "sources" also gave him info on a December COMEX collapse. He called that. Again, no collapse.
    His source was Max Keiser's You Tube video.

    This "overnight failure" call came from Edward Harle's looney tune conspiracy site in the UK. A site that talks about the mysterious Leo Wanta's trillion dollar wire tranfers hijacked by George Bush.

    Willie's sources are You Tube video's and nut job babblings from other loons on the internet.

    Eric, keep up your own good work and please, don't touch these secret source "predictions" with a 10 foot pole.

    If there is ever a significant, market moving over night failure in the system, I promise you that some some fringe, 3rd tier gold bug, renting out Pam Aden's laundry room in Costa Rica isn't going to be the source.

    Joey Vocarro

  5. steve vargas says:

    Judging by the Gold, Silver & FX markets this week something of sizeable importance is coming down the monetary mountain.

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