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To: long-gone who wrote (35528)	6/18/1999 7:52:00 AM
From: SgtPepper	Respond to of 116824

Swiss say NO! Is London next?? _______________________________________ Thursday June 17, 8:59 pm Eastern Time BoE warns on bank credit to resurgent hedge funds By James Saft LONDON, June 18 (Reuters) - Hedge fund activity in global financial markets may be on the rise, fuelled by a new willingness by banks to extend credit, a report by the Bank of England said on Friday. The BoE's Financial Stability Review, which monitors the stability of the UK and world financial system, said that some banks appear to have shrugged off the lessons of the near-default of Long-Term Capital Management (LTCM), which roiled financial markets in 1998. The report said the BOE has seen anecdotal evidence suggesting that activity by highly leveraged hedge funds may have picked up. ''There have also been some suggestions that lenders to highly leveraged institutions may have begun to relax their terms again...despite the obvious lessons of last year's events and the clear recommendations about good practice drawn up since the LTCM episode,'' the report said. In September, LTCM had to be rescued in a Federal Reserve-ochestrated $3.6 billion bailout by 14 banks and securities firms after it chalked up big losses when its complex trading bets went wrong. Hedge funds are vehicles for sophisticated investors which often use large borrowings to magnify returns. In the case of LTCM this went wrong when a complex series of trades was driven far into the red after Russia's effective default on sovereign debt. The LTCM debacle prompted a report by the Basel Committee of Banking Supervisors which recommended that banks' exposure to hedge funds be more tightly monitored. The BOE report said that it was unclear how much weight should be given to the anecdotal evidence of looser lending to hedge funds. ''But it is important that (Basel) recommendations are implemented by all institutions, even as memories of last autumn's events fade,'' the report said.

To: long-gone who wrote (35528)	6/18/1999 7:55:00 AM
From: SgtPepper	Respond to of 116824

Clip from Kitco chat, awaiting verification ___________________________ Intervention: Bank of Spain just bought eur/jpy on behalf of Bank of Japan) Looks official now: ___________________________________________ saratoga springs ss 11:52 GMT June 18, 1999 (MMS)JPN Bk in NY confirming BoJ intervention along with another European CB probably the Buba in both USD-JPY and EUR-JPY.

To: long-gone who wrote (35528)	6/18/1999 8:39:00 AM
From: lorne	Read Replies (1) \| Respond to of 116824

SPOT GOLD RALLY TO $263/OZ DIES AS MARKET DIGESTS SWISS NEWS London--Jun 18--News of opposition to Thursday's amendment in the Swiss constitution relating to the beneficiaries of gold reserves saw spot gold rally $5 to a high of US $263 per ounce this morning. However, prices later subsided as the news was digested and it became clearer that the opponents were more concerned over the use of sale proceeds than the gold disposal itself. (Story .13180) SWISS PARLIAMENT REJECTS AMENDMENT REGULATING GOLD SALE EARNINGS Zurich--Jun 18--The Swiss parliament in a vote of both chambers--Upper and Lower House--today rejected an amendment to the constitution designed to regulate how the earnings from the planned sale of 1,300 tonnes of excess gold reserves by the Swiss National Bank are to be used. This however has no influence on the SNB's planned gold sales. (Story .13595 LTCM DENIES GATA ALLEGATIONS IT MANIPULATED GOLD MARKET New York--Jun 17--Long Term Capital Management(LTCM) fund has denied allegations by the Gold Anti-Trust Action Committee (GATA) that the fund manager had manipulated the gold market. In an affidavit obtained by Bridge News, LTCM said it had never entered into "any transaction involving the purchase or sale of gold." However, LTCM said it has bought and sold publicly-traded gold mining company securities. (Story .20050) crbindex.com