On July 9, a source in Argentina notified a local radio show host that Britain may be declaring a bank holiday sometime next week in light of the collapsing financial situation taking place now in the UK following the Brexit leave referendum vote.
A U.S. ex-pat and host of the popular Radio Ranch daily internet broadcast was told by a local radio source in Mendoza City, Argentina that they had come upon information that Britain was planning to close down their banking system sometime during the week of July 10-17, and at this time they are seeking further validation of the information.
Since the June 24 referendum vote in the UK to leave the European Union, several financial institutions tied to their burgeoning housing bubble have halted remissions for investors, and are experiencing severe liquidity problems. And as with nearly all financial and hedge fund based portfolios, most major banks have some form of liability tied to these management funds, whether through loan guarantees or derivative exposure.
While not on the same scale with a Lehman event, some analysts are calling Standard Life’s problems on par with the Bear Stearns collapse which of course preceded the 2008 global financial meltdown.
Rogue Money will keep this announcement updated as more information and verified sources come in, so stay tuned to this article and others for further news.
Update to this story, 7:30pm PST, July 9:
Ok….I’ve been on this for the last several hours…here’s the dope from another direction.
This has actually been leaked from several locations including my Russian source in Israel but with a slightly different twist. There was a concern by Putinski’s that a British currency/bank reset/drama was being set up to look like a cyber attack to be blamed on Russian assets. In an effort to head off blame and reposit-it squarely back on the banksters there have been several leaks of variations of a bank closure reset run up the flag poles at various locations to preempt any blame for a Cyber attack origination. This is a game akin to some variation of tic tac toe and Ali’s rope-a-dope (dance and absorb the blows till your opponent wears out, then move in for the attack when it really counts in later rounds).
This is a dance till the next major engagement…Putin is trying to match move for move but not escalate unnecessarily and also not to extend his support/supply lines any further than required (very different than desired).
Update to this story 3:00pm PST, July 10
Following the gating – or forced haircuts – of eight large UK property investment funds this week, fears have grown rapildy of therisk of contagion, which, as The FT reports, is much greater than first feared, with detailed analysis showing that a wide pool of funds have been caught up in the gates imposed on investors withdrawing cash.
The worry is that this will trigger systemic problems for the marketplace, which is already reeling from the UK’s decision last month to end its membership of the EU.
A prominent UK fund manager, speaking on condition of anonymity, said: “When you start getting daily trading funds-of-funds investing in daily trading funds that are invested in illiquid assets, that seems to be layering up potential liquidity risks. “[Investors need to] consider the impact on funds that are caught with material investments in the gated property funds.”
Three multi-asset funds run by Henderson also have around 3.5 per cent of their assets in the company’s own suspended property fund, while Aviva Investors’ multi-asset product has a 4 per cent stake in its gated property fund.
Many other multi-asset funds — one of the fastest-selling investment strategies of the past 12 months — run by rival investment managers have also been caught out by the property fund suspensions.
And so, as The Telegraph reports, financial regulators are considering bringing in a raft of emergency measures to stem the flood of money out of Britain’s biggest property funds that caused fresh market panic last week.
It is understood Bank of England officials are considering the introduction of enforced notice periods before redemptions, slashing the price for investors who rush for the door, or additional liquidity requirements for funds.
The funds, which invest in offices, warehouses and retail parks, offer daily liquidity, meaning investors can buy and sell freely despite the fund being unable to sell propertiesquickly except atknockdown prices.
When large numbers of investors pull out, fund managers slash prices and dump property on the market, and have to close the funds to further trading to prevent a run on the fund.
Andrew Bailey, the new head of the Financial Conduct Authority, said he was looking into changing the way the funds work. “Suspension is designed into these structures, it’s not a panic measure, it’s designed to deal precisely with that situation, where there’s been some shock to the market,” he said.
“It does point to issues that we will need to look at in the design of these things from the point of view of conduct and systemic stability.”