Tuesday, September 01, 2009

A Rumble from PRC

Hmmmm.

The State-owned Assets Supervision and Administration Commission, the regulator and nominal shareholder for state-owned enterprises (SOEs), told six foreign banks that SOEs reserved the right to default on contracts, Caijing magazine quoted an unnamed industry source as saying in an article published on Saturday. --quoted in Denninger

Those 'foreign banks' are Big Players--like Goldman-sized Players.

They may or may not actually get hurt by defaults; after all, none have been declared, and size matters.

But that's a signal of some sort.

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