Zero Hedge: "It Would Be An Earthquake" - Three Chinese Banks Tumble After US Threatens To Cut Them Off From SWIFT
In news that initially did not receive much prominence, on Monday a US judge found three large Chinese banks — reportedly the state-owned Bank of Communications, China Merchants Bank, and Shanghai Pudong Development Bank — in contempt for refusing to comply with subpoenas in an investigation into North Korean sanctions violations. This could open the door for them to be cut off from the US financial system, i.e. SWIFT.
"Should it occur, to say that China will not take that well is as large an understatement as one can conceive of. It would be an earthquake", commented Rabobank's Michael Every.
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WNU Editor: If there was one thing that would raise the current tensions between the U.S. and China to an astronomical level, it is cutting off Chinese banks from SWIFT. I do not think it is going to happen, but people (like the above Zero Hedge article) are talking about it.
4 comments:
Is this truly another handle to hit China with? What would be the consequences of them showing contempt for US laws? And the consequences for us if we shut these banks off from Swift?
Zerohedge tends to be Cassandras on economics, trade and life in general.
The Strategic Culture Foundation at Zerohedge is suspicious. If they were linked to the FSB or somebody it would not be surprising.
Interesting read especially the hacking stuff.
https://en.wikipedia.org/wiki/Society_for_Worldwide_Interbank_Financial_Telecommunication
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