To: roguedolphin who wrote (86573 ) 9/25/2008 1:36:42 AM From: Amark$p Read Replies (1) | Respond to of 116555 China now denying..., this is a story, if true, China would sure want to keep a lid on, leaking this is a bad idea... _______________________ China regulator denies report it ordered banks to halt interbank deals with US BEIJING (XFN-ASIA) - China's banking regulator has denied a media report of a ban on domestic commercial banks from lending to US financial institutions. Citing industry sources, the South China Morning Post (SCMP) reported earlier today that the China Banking Regulatory Commission (CBRC) told domestic banks to stop lending to US financial institutions in the interbank market to prevent possible losses. _______________ China apparently did not like losses from Lehman Bros... BEIJING (XFN-ASIA) - China's banking regulator has told domestic banks to stop lending to US financial institutions in the interbank market to prevent possible losses, the South China Morning Post reported, citing industry sources. The ban by the China Banking Regulatory Commission (CBRC) is for interbank lending of all currencies to US banks but not to banks from other countries, the Hong Kong newspaper cited a source as saying. Another unidentified source told the newspaper that the CBRC issued the ban after obtaining data about the exposure of mainland banks to bonds issued by Lehman Brothers Holdings (nyse: LEH - news - people ). The newspaper said the CBRC was not available for comment. Seven listed mainland banks had a combined exposure of 721 mln usd to bonds related to Lehman Brothers, the newspaper noted. The ban covers interbank lending of all currencies to US banks but not to banks from other countries, said the Hong Kong newspaper. The CBRC said in a statement on its website that it has not ordered such a ban and that the SCMP published the report without verifying its authenticity. ____________ BEIJING -(Dow Jones)- China's banking regulator said in a statement Thursday it has never instructed domestic banks to stop lending to U.S. financial institutions on the interbank market. The regulator 'has never released any notices or ordered domestic commercial banks through any channels not to lend money on the interbank market to U.S. financial institutions,' the China Banking Regulatory Commission said. Earlier Thursday, the South China Morning Post cited unidentified industry sources as saying the instruction from the CBRC applied to interbank lending of all currencies to U.S. banks, but not to banks from other countries. The statement posted on the CBRC's Web site said the report was 'irresponsible.'