Letter of Credit Forum

This blog reports that GE has flatly refused to honour an LC until the applicant provide more cash collateral. From the little facts known, it seems that GE prefers to breach its obligations and is waiting to spend money on attorneys.

This article reports that Indian banks refuse to deal with lesser known US and European banks.

The good news as reported by the economist that the LIBOR is falling and interbank lending is thawing up, apparently has not spread across the globe.

We have had the impression for quite some time that banks regulated the markets less through the financial instruments at their disposition and more through their words, the views and announcements of Greenspan and Bernanke. Now we see that the markets have turned a deaf ear on central bankers and that even the considerable financial resources they have, remain ineffectual in face of the global mood.