Monday’s Insider Trade
Standard & Poor’s downgraded the TBTF banks yesterday, but the stock market soared on Monday.
The Fed may have leaked the decision on Monday morning to bail out Europe, resulting in a massive insider trade.
And from Forbes, today:
Did a big European bank come close to failing last night? European banks, especially French banks, rely heavily on funding in the wholesale money markets. Given the actions of the world’s largest central banks last night, it raises the question of whether a major bank was having difficulty funding its immediate liquidity needs.
The Federal Reserve, the Bank of England, European Central Bank, the Bank of Japan, the Swiss National Bank, and the Bank of Canada in a coordinated action moved to provide liquidity to the global financial system.
The last global intervention happened only ten weeks ago. I wonder if that one was leaked beforehand.
14:00: Tyler Durden offers more evidence at Zero Hedge:
Its (sic) clear at least from the chart that regimes shifted dramatically on Monday and we also noted that European equities were so dramatically disconnected from credit that evidently someone was ‘guessing’ really well with a large amount of flow.