Your guide to what the US 2024 elections are for Washington and the world
Banks contacted the Boe regulating body to discuss the market liquidity and whether they have problems with the fact that some clients, such as hedge fond, cannot listen to margin calls, according to people familiar with this issue.
These people have found small signs of serious troubles.
On Wednesday last week, the US president’s announcement on wide tariffs on trading partners unleashed the market that continued on Monday in Asia and Europe. US stocks closed just below after the day of the wild swings.
Trump demonstrated little features on his aggressive tariff policy, even if some of his billionaire supporters publicly lobbying him to reconsider it.
Against the backdrop of Financial Times, it was reported on Friday that the hedge fund had suffered from the biggest margin calls since Covid Pandemic. Several banks on Wall -Story asked the clients hedge -facilities to delay more money as security for their loans, as the cost of their possessions collapsed, people reported about the situation.
Failure to comply with the call may cause a negative feedback cycle if the hedge fond is forced to sell assets to ensure liquidity, which can further reduce the market.
Bank leaders said they still absorb how Trump’s tariffs could affect their business, but asset sales have been ordered.
“For us, this is the usual practice of implementing careful monitoring of market liquidity during greater instability,” said the Bank’s Bank’s press.
The BOE financial policy committee must submit an update on financial market and system risks when it releases a record of its latest meeting on Wednesday.
Sarah Briden, Deputy Governor Boe, is responsible for financial stability, will make a speech on Thursday, which will discuss the consequences of the market gap caused by Trump’s tariffs.
Separately, the American branch group of the Banking Policy Politics Countess convened a call over the weekend for its members, which included the boss Jpmorgan Chase Jamie Dimon and the Bank of America Brian Minikhan executive director to discuss the impact of tariffs, people who are familiar with this. Earlier it was reported about Sky News.
JPMORGAN and BOFA refused to comment. The BPI press secretary said the group did not comment on discussions and interactions among its members.
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2025-04-07 23:16:00