Thank you. I am sorry that I have been writing so little.

I think that is part of it. They know they could get caught not being able to borrow form the Fed but a)They can cry to the ECB and b) they can whine to the Fed and get it to open some other sort of funding if they can make the case that they are soo very big.

Either way the logic is to dodge regulation todaty even if it runs a risk tomorrow.

Are the EU based banks less worried now that they have ECB funding flowing like the Rhine? In a pinch, couldn’t they now obtain ECB funding in exchange for Monopoly Assets (Like Italian RMBS, for example) and divert it to the US subsidury?

Not ideal, in their eyes, but better than having to inject a large pile of capital now and leave it there.

Now they try to pretend that there’s some kind of sandbox that can prevent contagion spreading from the periphery to the core – there isn’t. The banking system is roped together; as more economies slip over the edge, so the weight on those remaining gets heavier. German banks lent to Greece, Spain, Portugal Italy, as did US banks. Only a constant transfusion of cheap debt is keeping them afloat. The MSM’s insistence that there’s light just ahead, round the next corner, is bluff to retain the masses belief in a broken system and swallow the austerity it requires.

As Dan Hind says in his latest pamphlet – Common Sense:
“The governing order’s most powerful protection is our reluctance to explore what underpins the day-to-day of what we think and do … The same people who told us all was well in the years before the crisis are still in charge. This will continue until we achieve a better understanding for ourselves and then act on this understanding.”

Well worth a read: http://goo.gl/1Wlhu

As he memorably put it about Europe and its banks… Germany is just living in the Penthouse of the same old Roach Motel.

GMAC also made a huge number of subprime residential loans in the US. I think “Ditech” was a subsidiary.

I didn’t know that Mick C. Thank you. And welcome.