The meltdown prompted Russia’s central bank to slash reserve requirements for banks in a bid to restore confidence as central bank head Sergei Ignatyev said he hoped for a “normalisation of the situation” in several days.
-
Huh… it’s exactly that kind of thing which caused the sub-prime meltdown, as well as allowed Freddie Mae/Fannie Mac to cook their books.
Not a finance guy, but this strikes me as a desperate attempt to patch things temporarily in the hopes of getting a short-term gain. The downside is increased risk of significant long-term loss.
Yuck. No one learns.