Today's Citi is in better shape because it doesn't do 1980s-style sovereign lending.
Banks will be able to use ratings for all sovereign lending, and for a limited amount of corporate lending.
For sovereign lending, there is a smooth scale from 0% to 8%.
Transparency, after all, is essential to the sort of private enterprise and sound sovereign lending that will determine the future economic viability of these new entities.
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If France was to fall then a global sovereign lending strike could hit, tipping the world economy into uncharted territory in what would amount to a total global economic malfunction.
Western banks should be encouraged to replace this kind of commercially unsound lending to sovereign borrowers with tightly structured, specific purpose credits in support of trade transactions and projects.
Either way, it should probably be a matter of national pride that investors now apparently have more confidence when lending to the UK as a sovereign than to Germany.
Could the the New York Fed be lending out gold bars as security for sovereign loans?
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Since so many small banks have now tapped LTRO, hopes are rising that as well as slowing the pace of bank deleveraging and propping up sovereign-bond markets, the liquidity may encourage new lending to the real economy.
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He says that one way the bank is doing so is by lending to state and local governments who lack the sovereign guarantee needed to borrow cheaply in markets.
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When sovereign and private debt markets changed their minds about the desirability of further lending to these countries, governments, businesses and households were all placed under serious pressure to run down their debt levels.
But here's the thing: the risk premium for lending to the slightly shambolic household of Peston, as opposed to the sovereign nation of Italy, is rather less than I expected.
And the US Federal Reserve and bank regulators said that the downgrade won't affect the risk-weighting attached to US sovereign debt for banks - which means that US banks should not be deterred from lending to their government to any great extent.
The rules pose another systemic problem as they tend to feed the sovereign-bank cycle currently causing the crisis due to sustaining the current death spiral of financial lending.
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The toxic correlation of sovereign and bank borrowing rates implies that the rise in government financing costs will be felt in terms of higher bank lending rates.
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