Mnuchin puts out bizarre statement about bank liquidity. Markets then crash. Again.

If he thought it would inspire confidence in the markets, his bizarre announcement did just the opposite.

Over the weekend, U.S. Treasury Secretary Steven Mnuchin issued a statement saying that he “conducted a series of calls today with the CEOS of the nations six largest banks,” which included Bank of America, Citi, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo, and the bank executives “confirmed that they have ample liquidity available” for consumer and business lending operations. To which, the collective response from the whole world seemed to be: “Wait, who said anything about not having ample liquidity?”

The curious statement intended to reassure the markets prompted the opposite response. “This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing,” Cowen & Co. analyst Jaret Seiberg wrote in a note to clients. "Not only did he consult with the biggest banks, but he is talking to all of the financial regulators on Christmas Eve. We do not see this type of announcement as constructive.”

[link to oilprice.com (secure)]

Seriously WTF: he is reassuring banks about liquidity now?

Last Edited by Sardonicus Landshark on 12/25/2018 12:58 AM