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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (6977)	11/4/1997 2:39:00 PM
From: Joseph G.	Respond to of 18056

Mohan, he said "temporarily c s banks", which I interpret as referring to the normal Fed operations (short-term lending of reserves). Joe

To: Cynic 2005 who wrote (6977)	11/4/1997 2:53:00 PM
From: Defrocked	Respond to of 18056

The term used was "temporarily cash-strapped" banks as what occurred in Oct. 1987 when liquidity needs of banking customers, and in turn their banks, created interbank transfer congestion and threats of non-payments. While banks have benefitted greatly from stable economic climate of recent years, they can run into temporary difficulties due to market volatility e.g. CMB's $200mm pre-tax loss potential on Brazilian and Russian emerging market debt. PS: BTW, I am not concerned about bank solvency just a potential decline in the stock market of 10 to 25%. David Berry, bank analyst at Keefe, Bruyette & Woods Inc. says October was a tough trading month for Bankers Trust, J.P.Morgan and CMB although losses for the quarter as a whole are not expected.