Beijing Tells Evergrande's Billionaire Founder To Repay The Insolvent Company's Debts

Hui Ka Yan, founder of China Evergrande Group, had once amassed a fortune of $42.5 billion, placing him at the top of the wealth rankings for all of Asia. But 73% of that immense fortune has now evaporated, and the tycoon will almost certainly lose even more as anxious creditors, suppliers and homebuyers besiege Evergrande’s offices.

In a new twist of how China may soon conduct corporate bankruptcies, Chinese authorities told Hui Ka Yan to use his personal wealth to "alleviate" China Evergrande Group’s deepening debt crisis, Bloomberg reported according to people familiar with the matter.

Beijing’s "directive" - which to us sounds just a bit m,more forceful than merely "urging" - to the Evergrande founder came after his company missed an initial Sept. 23 deadline for a coupon payment on a dollar bond, and takes place as local governments across China are monitoring Evergrande’s bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.

According to Bloomberg, the demand that Hui to breach the corporate veil and "tap his own fortune to pay Evergrande’s debt adds to signs that Beijing is reluctant to orchestrate a government rescue, even as the property giant’s crisis spreads to other developers and sours sentiment in the real estate market." Our read is slightly different: Beijing will still have to orchestrate a government rescue because while Yan's fortune has shrank to "just" $7.8 billion from its 2017 peak of $42 billion, that would be a tiny fraction of the $300+ billion in debt and other liabilities the company owes. As such, Beijing's demand is merely a warning to other oligarchs: if your company became over indebted and is suddenly no longer viable, your own fortune will be at risk. Bloomberg's notes as much, saying that it was unclear whether Hui’s fortune is big and liquid enough to make a sizable dent in Evergrande’s liabilities, which swelled to more than $300 billion as of June. The developer’s dollar bonds are trading at deep discounts to par value as investors brace for what could be one of China’s largest-ever debt restructurings.

To be sure, Beijing won't have much trouble bringing its case to the people, especially those people who lost their life savings on Evergrande Wealth Management Products: Hui’s fortune is derived from his controlling stake in Evergrande and the cash dividends he’s received from the company since its 2009 listing in Hong Kong. Hui has pocketed about $8 billion over the past decade thanks to Evergrande’s generous payouts, according to Bloomberg calculations. So, flipping Beijing's new paradigm of "shared prosperity" on its head to "shared misery", it only makes sense for Yan to lose everything as his company slowly goes under. While Evergrande surprised some China watchers by pulling back from the brink of default, paying a $83.5 million coupon to international bondholders before the grace period expired Oct. 23, the next big test will come as soon as this Friday when the 30-day grace period on another dollar coupon payment comes due. A hefty wall of maturing debt awaits in 2022, with some $7.4 billion of onshore and offshore bonds coming due. It wasn't clear where Evergrande's debt repayment funds came from. Separately, Reuters reported that Hui agreed to put his own money into a Chinese residential project tied to a bond to ensure it’s completed and bondholders get paid.

Unfortunately for Evergrande's lenders, even if the billionaire backstops the debt with his personal funds, it won't make much of a difference. The property giant's operations have effectively frozen, as sales collapsed 97% in the most recent period, while there has been very little help from asset sales in recent months even after Hui put stakes in once-prized arms such as his electric vehicle and bottled water units on the block. Evergrande said last Wednesday it scrapped talks to offload a stake in its property-management arm. The deal fell apart even after officials in Evergrande’s home province of Guangdong helped broker the talks.

https://www.zerohedge.com/markets/beijing-tells-evergrandes-billionaire-founder-repay-insolvent-companys-debts

>>103763

morning w

>>103767

morning

Biden to announce up to $102m in funds for U.S.-ASEAN partnership

U.S. President Joe Biden will announce plans to provide up to $102 million to expand the U.S. strategic partnership with the Association of Southeast Asian Nations (ASEAN) at a virtual summit with the 10-nation bloc on Tuesday, the White House said.

The U.S. funding will go towards health, climate, economic and education programs, a White House factsheet said.

Of the total, $40 million will go to an initiative to help address the current COVID-19 pandemic and strengthen ASEAN's ability to prevent, detect and respond to future outbreaks of infectious diseases, it said.

A further $20.5 million will go to help tackle the climate crisis and up to $20 million to support cooperation on trade and innovation. Another $17.5 million is earmarked for education projects and $4 million to promote gender equality and equity, it said.

Biden's participation in the virtual summit will mark the first time in four years that Washington will engage at the top level with a bloc that it sees as key to its strategy of pushing back against China.

On Wednesday, Biden will also take part in the broader East Asia Summit, which brings together ASEAN and other nations in the Indo-Pacific region, a senior official of the U.S. administration said.

https://asia.nikkei.com/Politics/International-relations/Biden-to-announce-up-to-102m-in-funds-for-U.S.-ASEAN-partnership

Belgian AF BAF88 Falcon 7X inbound to JBA from Brussels Int'l depart earlier today

Biden’s Nominee Omarova Has a Published Plan to Move All Bank Deposits to the Fed and Let the New York Fed Short Stocks

This month, the Vanderbilt Law Review published a 69-page paper by Saule Omarova, President Biden’s nominee to head the Office of the Comptroller of the Currency (OCC), the Federal regulator of the largest banks in the country that operate across state lines. The paper is titled “The People’s Ledger: How to Democratize Money and Finance the Economy.”

The paper, in all seriousness, proposes the following:

(1) Moving all commercial bank deposits from commercial banks to so-called FedAccounts at the Federal Reserve;

(2) Allowing the Fed, in “extreme and rare circumstances, when the Fed is unable to control inflation by raising interest rates,” to confiscate deposits from these FedAccounts in order to tighten monetary policy;

in all fairness the Patriot Act actually authorizes the Treasury to do this and take yer money replacing it with T Bills/Notes

(3) Allowing the most Wall Street-conflicted regional Fed bank in the country, the New York Fed, when there are “rises in market value at rates suggestive of a bubble trend,” such as with technology stocks today, to “short these securities, thereby putting downward pressure on their prices”;

(4) Eliminate the Federal Deposit Insurance Corporation (FDIC) that insures bank deposits;

They don't habs enough to cover eben 5% of all 'insured' deposits so no biggie there.

(5) Consolidate all bank regulatory functions at the OCC – which Omarova has been nominated to head.

Republican Senator Pat Toomey has been running a Red Scare campaign against Omarova, who was born in the Kazakh Soviet Socialist Republic (now Kazakhstan) and attended Moscow State University on a Lenin Personal Academic Scholarship.

The real threat that Omarova poses to U.S. financial stability, that Democrats should be calling out, is that she wants to further concentrate all major aspects of the U.S. banking system in the hands of the Federal Reserve, a captured regulator whose 12 regional bank tentacles are, literally, owned by the banks. (See These Are the Banks that Own the New York Fed and Its Money Button.) Omarova offers not one scintilla of a suggestion about restructuring the Fed so that it is not owned by or controlled by the banks.

In her paper, Omarova characterizes the current relationship between the Fed and the banks as the Fed running a “franchisor ledger” to assist its franchisee-banks. But as the Fed’s secret $29 trillion bailout of the mega banks on Wall Street and their foreign derivative counterparties proved following the financial crash in 2008, it’s actually the banks that are cracking the whip and the Fed amicably doing their bidding. That means that the mega banks are the franchisor and they’ve shifted their faux bank examinations and faux stress tests to the Fed, for appearances sake.

This point is further demonstrated by the fact that during the Fed’s 2007-2010 bailouts, most of the Fed’s emergency lending programs were farmed out in no-bid contracts to the very banks being bailed out. JPMorgan Chase, a five-count felon, continues to have a contract with the Fed to serve as custodian of more than $2 trillion of the Fed’s agency Mortgage-Backed Securities (MBS).

As further proof as to who owns whom, the Federal Reserve Board of Governors has outsourced its major functions to the privately-owned New York Fed, whose largest private shareholders are the mega banks, JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon.

moar

https://wallstreetonparade.com/2021/10/bidens-nominee-omarova-has-a-published-plan-to-move-all-bank-deposits-to-the-fed-and-let-the-new-york-fed-short-stocks/

Harris to visit France next month, meet with Macron

Vice President Kamala Harris will travel to France in November to discuss COVID-19 and climate issues with French President Emmanuel Macron and mark Veterans Day, the White House said Friday.

The Nov. 11 holiday coincides with Armistice Day in France, marking the end of World War I. Ms. Harris and Second Gentleman Doug Emhoff will visit the Suresnes American Cemetery in Hauts-de-Seine, where more than 1,500 American soldiers are buried. Back in June, when Ms. Harris was asked why she hadn’t visited the southern U.S. border as part of her immigration portfolio, she said: “And I haven’t been to Europe.”

The vice president will also attend and deliver a speech at the fourth annual Paris Peace Forum on Nov. 11 and participate in the Paris Conference on Libya on Nov. 12.

https://www.washingtontimes.com/news/2021/oct/22/vp-harris-heads-paris-after-all/

>>103593 pb

BIFF73 USAFSOC C-32B on descent for Curacao..most likely departed San Juan, PR earlier today

Data has it 'frozen' not much further south than the last available cap above from yesterday

>>103790

(4) Eliminate the Federal Deposit Insurance Corporation (FDIC) that insures bank deposits;

speaking of the FDIC...

U.S. regulators exploring how banks could hold crypto assets - FDIC chairman

A top U.S. bank regulator said U.S. officials are looking to provide a clearer path for banks and their clients that are looking to hold cryptocurrencies, in order to keep control over the fast-developing asset.

Jelena McWilliams, who chairs the Federal Deposit Insurance Corporation, told Reuters in an interview on Monday that a team of U.S. bank regulators is trying to provide a roadmap for banks to engage with crypto assets.

That could include clearer rules over holding cryptocurrency in custody to facilitate client trading, using them as collateral for loans, or even holding them on their balance sheets like more traditional assets. “I think that we need to allow banks in this space, while appropriately managing and mitigating risk,” she said in an interview on the sidelines of a fintech conference. “If we don’t bring this activity inside the banks, it is going to develop outside of the banks. ... The federal regulators won’t be able to regulate it.”

McWilliams' comments provide the fullest picture yet of what regulators are exploring as part of a cryptocurrency "sprint" team first announced here in May. The goal of the team was to ensure cryptocurrency policy coordination among the three main U.S. bank regulators - FDIC, Federal Reserve and Office of the Comptroller of the Currency.

The rapid emergence of cryptocurrency has led to a murky regulatory picture in the United States. Under previous leadership, the OCC took an aggressive approach to bringing cryptocurrency into banks, including blessing bank custody services for cryptocurrency, while other agencies were slower to act.

Those decisions are now under review, according to acting Comptroller Michael Hsu.

https://www.reuters.com/article/usa-regulator-crypto-currency/u-s-regulators-exploring-how-banks-could-hold-crypto-assets-fdic-chairman-idUSL1N2RM1FO

RCH365 USAF C-17 Globemaster on ground at Los Angeles Int'l from Redstone Arsenal-Army Airfield.

Arrived at Redstone from Hickam AFB depart yesterday

Crew flashed ANON 2x while on taxi to the west end (passing over World Way West Jet Bridge)...too quick to capture and does not show up in the 'history'.

Seen't o7

tail #05-5148-23

>>103804

can you add deez?

>>103790 Biden’s Nominee Omarova Has a Published Plan to Move All Bank Deposits to the Fed and Let the New York Fed Short Stocks

>>103796 U.S. regulators exploring how banks could hold crypto assets - FDIC chairman

>>103819

ty B

>>103822

>remains the chancellor in a caretaker capacity

While dhey figure out how and when to make her queen of yerp.

Huge Short Squeeze Leads To Stellar 2Y Auction

Amid growing concerns that today's 2Y auction could be a disaster as a result of the recent push wider in short-dated yields, yesterday we noted that demand to borrow 2022-2024 maturities spiked since last week, while investor demand to get hold of cash securities to be short either outright or against futures has made specified collaterals more expensive, and the decline in those financing rates has trickled into the general collateral market. In other words, everyone wanted to be short bonds but few had actual physical locate to short against.

Which brings us into today's 2Y auction when the tenor was trading super special in repo, suggesting there would be major squeeze come the auction. That's precisely what happened because contrary to fears of a disappointing auction, demand for 2Y paper was absolutely stellar (if for all the wrong reasons).

The $60BN sale of two year paper stopped at a high yield of 0.481%, which stopped through the When Issued 0.43% by 0.2bps. Still it was sharply higher than last month's 0.310% and the highest since Feb 2020. The bid to cover surged to 2.68 from 2.28 in September and was the highest since May as bidder lined up to buy cash bonds so they could then short them.

Internals were also solid with Indirects surging from 45.32% to 58.14% which was also well above the six-auction average of 45.32%. And with Directs taking down 22.30% Dealers were left holding just 19.55%, one of the lowest on record-see above Cap#1

In short, today's 2Y auction was stellar but not because traders wanted the exposure outright but because they were so extremely short into the auction, they desperately needed a cash deliverable.

https://www.zerohedge.com/markets/huge-short-squeeze-leads-stellar-2y-auction

>>103830

>>103831

BOXER512 USAF C-40C west from JBA

>>103835

BOXER512 USAF C-40C on final at Scott AFB, IL from JBA

LOKI82 USAF E-4B Nightwatch es from Lincoln Muni ground stop-inbound from Dyess earlier this morning

CHILL21 USAF B-52 Stratofortress es from Minot AFB N.D.

Saudi fund says to deposit $3 bln in Pakistan central bank

The Saudi Fund for Development said it was depositing $3 billion in Pakistan’s central bank to help support its foreign reserves, the kingdom’s state news agency reported on Tuesday. The fund added that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.

https://www.reuters.com/article/saudi-pakistan-aid/saudi-fund-says-to-deposit-3-bln-in-pakistan-central-bank-state-news-agency-idUSC6N2QW029

>>103808

RCH365 USAF C-17 Globemaster departed Los Angeles Int'l sw after a ground stop

>>103871