[EDIT- Emphasis ours- VBL]
Banks clearing gold trades in London can apply for an exemption from tighter capital rules due in January 2022, a British regulator said on Friday, removing what some said was a threat to the functioning of the market. The London Bullion Market Association (LBMA), an industry body, has lobbied against them, saying they are unnecessary and could force some banks – including clearing banks – to stop trading.
Following a consultation, the Bank of England’s Prudential Regulatory Authority (PRA) said on Friday it had “decided to amend its approach to precious metal holdings related to deposit-taking and clearing activities.”
It said it had introduced an “interdependent precious metals permission” which would reduce the size of the required capital buffer. “This is one of the key points that what we’ve been asking for all these years,” said Sakhila Mirza, the LBMA’s chief counsel. “Clearing will be exempt.”
The PRA said it would not classify gold as a high-quality liquid asset, which would have freed other trades such as precious metals loans and leases from the high capital requirement.The LBMA says gold is liquid enough not to need an additional liquidity buffer for clearing and settlement and short-term transactions. -Source Reuters
- Takeaway 1: This sucks, sell Gold
- Takeaway 2: The Banks are going under and need to be bailed out. buy Gold!
- Net-Net: Past behavior tells you this could to happen. They cannot jeopardize liquidity at the clearing level. They must have a smooth transition. Costs will be passed downstream, and profits will be strong upstream. The power will consolidate into even fewer banks. If you hear about it, they already know it. This is another gift to stackers and day traders. The banks grow stronger, the funds and end users grow weaker. Buying to hold never made more sense. That is what the central banks are doing. The banks cannot be bagholders. The GFC told us that banks are too precious. Buy Gold because you like Gold, not because you hate banks.
Loading ...
Ha ! Rigged Game still
Thanks, yet another data point supporting the idea that world power and the reset is being run out of London Banks. I’m reading Eustace Mullins’s “Secrets of the Federal Reserve” The London Connection.
Once (nearly all) current events are seen with this understanding, they make a lot more sense.
This entry in Wikipidia illustrates why he was over the target and the LONG GAME is being played out.
Eustace Mullins
Eustace Clarence Mullins Jr. was an American white supremacist, antisemitic conspiracy theorist, propagandist, Holocaust denier, and writer. A disciple of the poet Ezra Pound, his best-known work is The Secrets of The Federal Reserve, in which he alleged that several high-profile bankers had conspired to write the Federal Reserve Act for their own nefarious purposes, and then induced Congress to enact it into law. The Southern Poverty Law Center described him as “a one-man organization of hate”. Wikipedia my take >> another clear example of those who subscribe to the mantra – ‘as above, so below’ left is right, up is down, right is wrong, male is female and visa versa etc.
Eustace’s works. Fully, you might take a look at his work “Murder by Injection” The story of the medical conspiracy against America.
http://www.eustacemullins.us/