HSBC Hong Kong preparing to not honor paper gold contracts they sold
Letter sent out
Even a non-legal expert can discern that the letter essentially says the bank that issued the paper gold (un-allocated / non-physically backed) paper shall hence force no longer recognize any collateral value on any loans secured against the now officially collateral-worth-zero paper
they have a choice, sell their paper gold at inconvenient time and pay off loan, or move cash from accounts w/ other banks to make good basic margin call at HSBC
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