If someone had doubts that banks in Europe are the next nightmare well it is time to consider alternatives.
Financial Times reports that Siemens, pulled €500 million form a large French bank, which is not BNP so that leaves just SocGen or Credit Agricole and deposited the money straight to the ECB.
The implications of this are stunning, as it means that even European companies now refuse to work directly with their own banks, and somehow the ECB has become a direct lender of only resort to private non-financial institutions!
As Bloomberg reports further on the FT story, in total, Siemens has deposited between 4 billion euros and 6 billion euros, mostly through one-week deposits, with the ECB, FT says.
It isn’t clear from which bank Siemens withdrew its deposits, per the FT… but it is hardly difficult to figure out.
BNP Paribas isn’t the bank involved, FT reports, according to an unidentified person familiar with the bank.
This story will have a major impact on markets.