by Jim Quinn
Mnuchin later stopped by several survivalist stores to stock up on freeze-dried food, gas, and ammunition before heading off to his office in Cheyenne Mountain. t.co/qSLEOeigQv
— Rudolf E. Havenstein (@RudyHavenstein) December 23, 2018
Secretary Mnuchin convened individual calls with the CEOs of the nation’s six largest banks
The banks all confirmed ample liquidity is available for lending to consumer and business markets.
Washington — Secretary Mnuchin conducted a series of calls today with the CEOs of the nations six largest banks: Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase, James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.
Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to participate as well. These key regulators will discuss coordination efforts to assure normal market operations.
“We continue to see strong economic growth in the U.S. economy with robust activity from consumers and business,” stated Secretary Mnuchin and added “With the govemment shutdown, Treasury will have critical employees to maintain its core operations at Fiscal Services, IRS, and other critical functions within the department.”
Yeah, but markets aren't falling because they think banks are illiquid. They're falling because 8 years of yield-seeking speculation encouraged by the Fed's zero-interest rate policies created a bubble bigger than 1929 and 2000. Yet 45 blames Powell instead of Bernanke & Yellen. pic.twitter.com/rTZMxkqAq9
— John P. Hussman (@hussmanjp) December 23, 2018
Just in case any major bank CEOs were not worried about the prospects of another financial crisis, Mnuchin's Sunday afternoon calls to assure everyone there is nothing to worry about may have the opposite effect. Instead of putting out a fire he may have just lit one!
— Peter Schiff (@PeterSchiff) December 23, 2018
