Citi, which has been providing liquidity support to Wachovia all week, is sounding ready for a fight.
Italy and even Spain may yet need liquidity support from some combination of the EFSF, ECB and IMF.
The European Central Bank (ECB) had hoped to make the terms of its liquidity support to banks less generous.
This is why the Fed and other central banks have provided liquidity support to particular sectors of the financial system.
"Overwhelming force", when it comes to providing liquidity support for markets, has to mean support that is potentially unlimited - open-ended.
Increasingly the Fund is being drawn into the area of structural reform while the Bank is getting involved in liquidity support.
"The liquidity support they have extended cannot be continued forever, " said Veron.
But offering ample liquidity support to banks gets you only so far.
The second element of our response has been to offer liquidity support to the financial markets through a variety of collateralized lending programs.
By restricting its liquidity support, the ECB will be able to guide overnight interest rates towards 1% without having to alter its policy rate.
But in November the central banks of Canada, England, Japan, Europe, the U.S., and Switzerland, took coordinated actions to provide liquidity support to the global financial system.
The bigger the role that central banks have in offering liquidity support, the less commercial banks need to worry about their liquidity risk which is why tougher regulation of liquidity is required.
In the long term, central banks' willingness to broaden liquidity support during crises may induce banks to behave more riskily (a temptation that will need to be countered with more effective rules on banks' own liquidity).
Regulators are increasingly letting it be known that once the worst of the crisis is over, higher levels of capital will be an essential quid pro quo for the liquidity support they have provided to banks since last year.
As the mortgage crisis unfolded late in the summer of 2007, Northern Rock was forced to turn to the Bank of England for liquidity support to meet short term debt obligations, unable to secure adequate funding through private channels.
FORBES: Billionaire Richard Branson's Virgin Money Acquires Northern Rock For $1.2 Billion
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system.
That sounds bad, but the banks that have lost access to direct ECB funding can almost certainly still get money from the Greek central bank, which, of course, is ultimately, getting its cash from the ECB (though unlike the more direct form of ECB liquidity support, all the risk implicit in this so-called ELA lending is, formally at least, borne by the Greeks alone).
Regardless of the CCAR results, Ally continues to have strong capital levels and ample liquidity to support its automotive finance operations.
FORBES: CCAR Roundup: Fed Clears Capital Return From Most Banks, Flags Issues For Four
The SDR was created in 1969, during the Bretton Woods fixed exchange-rate system, because of concerns that there was insufficient liquidity to support global economic activity.
Moreover, given the added stimulus and intervention by the Bank of Japan, ongoing liquidity and support measures by the U.S. Federal Reserve and improved balance sheets by banks globally, equities elsewhere look very attractive.
On this plan, the EFSF could then be a proper European Monetary Fund, with one side managing adjustment programmes and (where necessary) orderly debt restructuring, and the other side using ECB liquidity to support confidence in solvent but troubled governments, by buying their bonds on the secondary market.
Unlike in America and Europe, where crippled banking systems and high debts blunt the impact of low interest rates, Asia, especially China, is awash with liquidity, which will support domestic spending (see article).
Meanwhile, many of the big banks around the world owe their continued existence to government support which provided liquidity and cash infusions when credit froze.
No balance sheet expansion means less support for gold, which benefits from excess liquidity.
FORBES: Gold Is Back Big Time: Draghi And Bernanke Prime The Pump
Gox platform and facilitate larger transaction sizes for better liquidity, maybe even adding forex trading APIs and FIX protocol support.
On the supply side, venture backed companies and their sponsors must support the use of the marketplace to provide managed liquidity options for their shareholders and to raise late stage capital for their companies.
Few think the compact will solve the crisis, but at least it preserves German support and provides cover for the ECB to keep providing liquidity.
The announced intervention reassured markets that policymakers stood by to support banks, leading to rallies across Europe. (Read Coordinated Central Bank Liquidity Bailout For Euro Banks Feeds Global Rally).
FORBES: Stocks Cap Off Fourth Consecutive Daily Gain On Euro Liquidity Bailout
"The authorities' programme is intended to support Ukraine's return to economic and financial stability, by addressing financial sector liquidity and solvency problems, by smoothing the adjustment to large external shocks and by reducing inflation, " said Mr Strauss-Kahn.
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