Treasury secretary startles Wall Street with unusual pre-Christmas calls to top bank CEOs

[brooklynite]

Source: Washington Post

Treasury Secretary Steven Mnuchin startled financial analysts, bankers and economists on Sunday by issuing an unusual statement declaring that the nation’s six largest banks had ample credit to extend to American businesses and households.

Mnuchin made the statement on Twitter after calling the leaders of the six banks, seeking to address an issue that had attracted little concern ahead of the treasury secretary’s tweet.

The statement came hours before Asian markets were set to open and following a sharp sell-off that made last week the worst for U.S. markets in a decade. President Trump has been furious at the sell-off, and efforts by Mnuchin to inspire confidence in the market have so far failed.

Several analysts said Sunday night that his outreach to the banks and subsequent statement were likely to backfire and drive even more concern.

Read more: https://www.washingtonpost.com/business/2018/12/23/treasury-secretary-makes-unusual-pre-christmas-call-top-bank-ceos-amid-market-mayhem/

[SunSeeker]

1. Mnuchin is an idiot. All he did was raise suspicions instead of assuage fears.

What a fucking dumbshit. Doesn't he realize he comes from Donald's kingdom of lies, and people know to view everything he says as a lie?

[brooklynite]

2. "Remain Calm!"

[SunSeeker]

3. 2019 is going to be an even bigger shitshow than 2018. nt

[RockRaven]

4. He is trying to cause an economic calamity, which Trump can try to blame on the "Schumer shutdown"

to distract from Trump's role in creating economic chaos through his tariffs, his erratic foreign policy, and his irresponsible petulant shutdown.

[groundloop]

5. The clueless idiot issued that statement from Cabo San Lucas.... while fed. employees are furloughed

Tiny has the biggest fucking idiots working for him, greedy grifters all.

[progree]

6. Top Trump official calls bankers, will convene 'Plunge Protection Team', Reuters, 12/23/18

WASHINGTON (Reuters) - U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

... The Treasury said in a statement that Mnuchin talked with the chief executives of Bank of America (BAC.N), Citi (C.N), Goldman Sachs (GS.N), JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N).

“The CEOs confirmed that they have ample liquidity available for lending,” the Treasury said.

Mnuchin “also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly,” the Treasury said.

... The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the “Plunge Protection Team.”

The group, which was also convened in 2009 during the latter stage of the financial crisis, includes officials from the Federal Reserve as well as the Securities and Exchange Commission.

...

S&P 500 -- down 17.5% from the 2931 Sept 20 peak
2931   All time peak, Sept 20
2638   Correction territory (down 10% from peak ) is long behind us
2417   Friday's close (down 17.5% from peak)
2345   Bear market begins at 20% down -- just 72 more points from Friday
2264   Last close before Inauguration Day
2198   Down 25% from peak

https://finance.yahoo.com/quote/%5EGSPC/history?p=%5EGSPC

We're still in the longest or one of the longest bull markets in history (beginning March 9, 2009 when the S&P 500 closed at 677) -- that officially ends when we hit 20% down from the last peak, and officially enter a bear market.

[UpInArms]

8. I smell fear

From the shitstain and his minions

[DoctorJoJo]

7. Market Futures ARE Up a Tad, But Who Knows If It Holds!

[modrepub]

14. 9:20 AM DOW Futures Down 650+

We'll see what happens in 10 minutes when the market opens. Am assuming it's a short trading day today being Christmas Eve.


https://finance.yahoo.com/quote/YM=F?p=YM=F

[pat_k]

9. What an idiot.

Offering reassurances on something for which no concern has been expressed is sure to prompt a "shit, should we be worried?" response.

Sort of like Barr issuing his statement about Trump immunity to obstruction of justice charges that weren't being pursued. (Response: "Wow, they are really worried about Trump's vulnerability to obstruction of justice charges." )

[UpInArms]

10. There's an interesting bit of commentary at Marketwatch

https://www.marketwatch.com/story/treasury-departments-odd-attempt-to-reassure-investors-may-have-just-backfired-2018-12-23

The statement added that Mnuchin, who is on vacation in Cabo San Lucas, Mexico, will hold a call Monday with the President’s Working Group on financial markets “to discuss coordination efforts to assure normal market operations.”

While apparently intended to as a pre-emptive reassurance to investors, the tweet may have done just the opposite, stoking fears that the government is bracing for the worst:

Well worth checking out ...

[NBachers]

11. Our credit is out of hot water &, we have many to give away so stop saying things like that!

[muriel_volestrangler]

12. "the equivalent of being awakened by a phone call from your college freshman son..."

Link to tweet

This is the equivalent of being awakened by a phone call from your college freshman son, who then leads with "the important thing is that I'm totally fine and everything is totally fine"

[riversedge]

13. "People are wondering whether this is really a role for the US Treasury secretary," he said.

Mnuchin calls big US banks after huge stock market falls

4 hours ago



US Treasury Secretary Steven Mnuchin has made calls to the heads of the country's six largest banks, in an unusual move aimed at reassuring investors after big falls in US stocks.

Last week, US stocks suffered one of the worst weekly falls in a decade, as an interest rate rise and US-China trade tensions rattled markets.

Mr Mnuchin said banks confirmed they had "ample liquidity" for operations.

It also comes amid a partial government shutdown over spending plans.

"The [bank's chief executives] confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations," the Treasury said in a statement attached to a tweet from Mr Mnuchin.

"[Mr Mnuchin] also confirmed that they have not experienced any clearance or margin issues, and that the markets continue to function properly," the Treasury's statement said.
'Strange times'

The BBC Today programme's business presenter, Dominic O'Connell, said the statement was "very odd" and could "spook markets, not reassure them".

"People are wondering whether this is really a role for the US Treasury secretary," he said.


Analysts also warned the unexpected statement could make investors nervous.

"More than anything else right now, Washington and politics are absolutely driving investor sentiment and market direction and that can turn on a dime," said Oliver Pursche, a board member at Bruderman Asset Management.

Mr Mnuchin also tried to dismiss reports that President Donald Trump had discussed the possibility of firing Federal Reserve chairman Jerome Powell, after the US central bank raised interest rates last week. ..........................

[MineralMan]

15. That is an odd thing for him to have done, isn't it?

Traditionally, there has been an Xmas/New Year rise in equities indexes. I wonder what they'll do this year, given the pathetic performance of the past couple of weeks.

Mnuchin is a Mnoron.

[MineralMan]

16. Well, at 9:41 AM, the Dow is at -167

So, no Monday bounce this Monday.

[UpInArms]

17. Dow ends down 650+ ... worst Christmas Eve plunge ... ever

Dow 21,792.20 -653.17 -2.91%
S&P 500 2,351.10 -65.52 -2.71%
Nasdaq 6,192.92 -140.07 -2.21%
GlobalDow 2,645.12 -37.22 -1.39%
Gold 1,272.40 14.30 1.14%
Oil 43.49 -2.10 -4.61%

[Marcuse]

18. "What an idiot!"