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There are reports HK bankers are already informally discussing how to structure a "bad bank." Earlier today, other reports said monetary authorities in Hong Kong were circulating the "crisis letter." The situation has taken a turn for the serious, a warning to the rest of the world because what HK is trying desperately to come to grips with is the same major problem as everyone else has, where the bubbles and now busts came from in the first place. Eurodollar University's Money & Macro Analysis ****** https://eurodollaruniversity.substack.com/ Eurodollar University's Anniversary Sale https://www.eurodollar.university/sale ****** HKMA's "Crisis Letter" https://www.hkma.gov.hk/media/eng/publication-and-research/reference-materials/banking/fa03.pdf Bloomberg Hong Kong Regulators Revive Crisis Playbook to Rescue Landlords https://www.bloomberg.com/news/newsletters/2025-07-22/hong-kong-regulators-revive-crisis-playbook-to-rescue-landlords Bloomberg Hong Kong’s $25 Billion Pile of Soured Debt Spurs Talks to Form ‘Bad Bank’ https://www.bloomberg.com/news/articles/2025-07-16/hong-kong-s-25-billion-debt-woe-sparks-talks-on-bad-bank Fitch Lower HIBOR May Not Fully Address Hong Kong Banks’ Asset Quality Pressure https://www.fitchratings.com/research/banks/lower-hibor-may-not-fully-address-hong-kong-banks-asset-quality-pressure-19-05-2025 HIBOR rates https://www.hkab.org.hk/en/rates/hibor https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU |