We also indicated that we acknowledged the role performed by central banks of different countries, and more particularly, in the recent past, the role of the European Central Bank, the role performed to the effect of ultimately preventing a liquidity crisis of substantial proportions, which would thus affect all countries adversely.
WHITEHOUSE: President Obama��s Bilateral Meeting with President Rousseff of Brazil | The White House
This reality, which was much in evidence in the recent case of the Mexican tesobonos, tends to create an incentive on the part of Western governments to intervene in the event of a liquidity crisis that threaten to harm scores of prominent firms and possibly thousands of investors.
"There is a possibility that the company could face a liquidity crisis in the first half of next year, " said Henry Diamond, a diversified services analyst with Credit Suisse First Boston.
Having watched the Enron process unfold, we know some of the things to watch for as signals of a liquidity crisis.
Central bankers who make up the oversight body of the Basel Committee on Banking Supervision announced new capital standards for banks on Sunday, aimed at reducing the risk of another financial crisis that comes from a drying up of banks' liquidity.
Not surprisingly, the cutover was a month late and still failed, triggering massive shipping delays, a pile-up of excess inventory, a list of angry customers who refused to pay, millions of dollar in losses and a full-blown liquidity crisis.
FORBES: Avoiding Growth That Leaves You Broke (Part 3): Calculating the Odds of Successful Execution
This lending constriction worsens a eurozone recession, which in turn exacerbates the weakness of banks: a financing or liquidity crisis morphs into a solvency crisis, as has already happened in Spain and looks set to happen in Italy (yesterday's refinancing of Italy's Banca Monte dei Paschi di Siena augurs ill).
As a second cushion against a liquidity crisis, the central bank acts as lender of last resort.
What is true is that Europe is in the middle of a textbook liquidity crisis.
The financial system, they say, faces a crisis not of creditworthiness, but of liquidity.
Many economists, including the heads of the US and British central banks, say China's high savings and its semi-fixed exchange rate helped cause the financial crisis by producing a glut of global liquidity.
If I understand the report correctly, the agencies say a mutual fund company using (gasp) an algorithm to trade dumped a bunch of sell orders on the futures market, which caused a liquidity crisis that took down the market.
Even with strong market demand and a great strategy, spending too much in the face of poor or slow execution can bring on a liquidity crisis.
FORBES: Avoiding Growth That Leaves You Broke (Part 3): Calculating the Odds of Successful Execution
Indeed, if rates rise significantly, the country will face a liquidity and solvency crisis the likes of which the planet has never before witnessed.
And it came into the crisis period with a strong balance sheet and plenty of liquidity.
In 2010-2011, American Apparel experienced a liquidity crisis forcing it to refinance some of its debt in order to avoid bankruptcy.
FORBES: Russian Olympians Will Wear Uniforms Made By American Brand
Geithner and senior officials at Treasury believe that the root of the crisis was liquidity, and that struggling banks could survive roughly intact if they had a temporary injection of funds a bailout.
This was a liquidity action, helpful in preventing a seize-up of financial markets and possible bank failures due to lack of liquidity, which comes with a financial crisis.
In 1995, Argentina faced a liquidity crisis, as capital fled in the aftermath of Mexico's crash.
They are reluctant to forgo profitable lending just to protect themselves against the remote chances of a liquidity shock especially when, in a crisis, the central bank is likely to step in with extra cash.
One of the most effective ways to slow down or stop a financial crisis is liquidity.
FORBES: An Unemployment Report That Screams Spectacular Failure
If it is not addressed, we could easily see the further spread of economic weakness to core countries, or even a debilitating liquidity crisis.
Moreover, Argentina was in the throes of recession, experiencing investor flight, high unemployment and a bank liquidity crisis.
James Giddens says the former CEO, Jon Corzine, along with his executives may face legal claims for breach of fiduciary duty when they used customer money to fund a growing liquidity crisis.
FORBES: JPMorgan's Other Messy Problem: MF Global's Missing Money
Administration efforts to characterize the current situation as a "temporary liquidity problem" appear strikingly similar to the miscalculations of the Latin American debt crisis in the early 1980s.
The current Governor, Sir Mervyn King, fell out with the previous government over his refusal to supply liquidity to the banking system at the height of the 2008 crisis until cornered by a coalition of BOE and Treasury officials.
Our banking system is as safe as it is because there are lenders of last resort who can create more money in a crisis to protect the entire system from collapsing in a liquidity crisis.
Post-financial crisis, after a number of municipal bond broker-dealers exited the market, voluntarily or otherwise, the level of liquidity in this market decreased substantially.
FORBES: Liquidity - The Muni Risk That Meredith Didn't Mention
The idea is that the Federal Reserve can be relied upon in times of crisis to come to the rescue, cutting interest rates and pumping in liquidity, thus providing a floor for equity prices.
应用推荐