Interbank markets must heal the broken link in lending chain

Central counterparty-like guarantees may reassure foreign central banks

It is generally more important to isolate and treat the cause of an illness than to relieve the symptoms. But when a symptom itself becomes a transmission agent, then it too will require a cure.

In August 2007, symptoms indicating chronic problems in the financial system first became evident in the money markets. Small fissures there soon developed into discernible splits and eventually chasms.

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JPMorgan to Pay $330 Million Over 1MDB TransactionsExternal link

JPMorgan to Pay $330 Million Over 1MDB Transactions