From a Wall Street Journal op-ed article by Nicolas Lecaussin:
'We can no longer borrow dollars. U.S. money-market funds are not lending to us anymore," a bank executive for BNP Paribas, who declines to be named, told me last week. "Since we don't have access to dollars anymore, we're creating a market in euros. This is a first. . . . We hope it will work, otherwise the downward spiral will be hell. We will no longer be trusted at all and no one will lend to us anymore."
Apparently BNP is not happy about the quote. It is a bit strange for a financial newspaper to put unsourced but clearly sensitive quotes in such a prominent place. The habits of political coverage don't play so well on the financial side of the shop.
UPDATE: On the substantive point of the article, Robert Peston makes a similar argument. In France, it's civil servants running the banks.
FINAL UPDATE: More at A Fistful of Euros.
'We can no longer borrow dollars. U.S. money-market funds are not lending to us anymore," a bank executive for BNP Paribas, who declines to be named, told me last week. "Since we don't have access to dollars anymore, we're creating a market in euros. This is a first. . . . We hope it will work, otherwise the downward spiral will be hell. We will no longer be trusted at all and no one will lend to us anymore."
Apparently BNP is not happy about the quote. It is a bit strange for a financial newspaper to put unsourced but clearly sensitive quotes in such a prominent place. The habits of political coverage don't play so well on the financial side of the shop.
UPDATE: On the substantive point of the article, Robert Peston makes a similar argument. In France, it's civil servants running the banks.
FINAL UPDATE: More at A Fistful of Euros.
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