More reports in recent days in the media, including a story in the Wall Street Journal describing a letter from State Street to its securities lending customers that announced restrictions on the ability of clients to withdraw cash from its cash reinvestment pools. In the Wall Street Manna blog a State Street spokesperson is quoted as saying:
"Our securities-lending program remains strong," a spokeswoman for the Boston company said. "We have not experienced any losses, and there are no restrictions on normal course transactions within the lending funds."
We have also seen recent stories about Northern Trust and Bank of New York Mellon in the cash reinvestment area. The credit crisis of last year has morphed into the liquidity crisis of today and is the most pressing issue facing the financial markets. Watch closely as this storyline continues to develop.
On another unrelated issue, I have once again been tinkering with the layout and features on the blog. Sorry, but this is still a work in progress. Out goes the Dilbert comic as traffic showed there wasn't much interest. Hopefully more the DataExplorers Securities Lending Daily Video Briefing will be of interest to you. You can also access it directly here.
Finally, I asked on Sunday for people's expectations for the US markets this week. The majority of people were expecting (hoping?) for the markets to rise off the back of the approved bailout at the end of the previous week. 50% thought it would be higher by close on Friday compared to Monday's opening whereas only 38% though it would be down. Should I do another poll this week?
Ready for another week?
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