http://www.opendemocracy.net/blog/tony_curzon_price/banking-shakes Comments for "Banking shakes, Tony Curzon Price " en http://www.opendemocracy.net/blog/tony_curzon_price/banking-shakes How should we interpret the massive investments from sovereign wealth funds being taken by UBS, Citi and <a href="http://www.ft.com/cms/s/0/294ed78a-ae3a-11dc-97aa-0000779fd2ac.html">Morgan Stanley</a> to shore up their capital reserves? Just when the central banks are making huge amounts of liquidity available cheaply, why are these banks going elsewhere for capital? This seems strange: the public is trying to force cheap money into your pockets, and you go elsewhere to shore-up your balance sheet. Are the Chinese and Gulf States offering even cheaper money?<br /><br />Not likely. Banking shares have fallen sharply, indicating that equity finance is very expensive at the moment. In fact, you can expect that the new part-owners have negotiated very good terms. The banks are taking money when they need it - always a sign that they&#39;ll get it over a barrel.&nbsp;<a href="http://www.opendemocracy.net/blog/tony_curzon_price/banking-shakes" class="read-more" title="Read the rest of this posting.">Read the rest of this post...</a><p><a href="http://www.opendemocracy.net/blog/tony_curzon_price/banking-shakes">read more</a></p> http://www.opendemocracy.net/blog/tony_curzon_price/banking-shakes#comment economics oD Today Tony Curzon Price Thu, 20 Dec 2007 13:19:52 +0000 tcp-old 35451 at http://www.opendemocracy.net