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These and other retrenchments reflect a growing liquidity crisis.
Ms. O'Brien, who had to approve such transfers, was also worried about the firm's growing liquidity needs and where the cash would come from.
Had such a requirement not been repealed in 1994, investors might have noticed the growing liquidity problems of Lehman Brothers Holdings, which used transactions it called Repo 105 and Repo 108 to reduce its short-term borrowings shortly before the end of each quarter in 2007 and 2008.
The technique Lehman used to hide debt and a growing liquidity crisis was created by a Lehman CFO who was a former E&Y partner leading E&Y partners to assume it was legit).
Just over a week after that statement, the Fed abruptly turned course, cutting the discount rate to encourage bank borrowing to ease a growing liquidity crisis in the credit and bond markets.
But primarily the increases are aimed at placating the International Monetary Fund (IMF) in advance of negotiations with that institution to come up with a new credit deal for Honduras that will further ease the country's growing liquidity and foreign debt crises.
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The ECB fears that this growing pool of liquidity might eventually be spent on goods, which could push up consumer prices, or property, which might inflate house prices.
Co-founder and managing partner Justin Fishner-Wolfson (pictured) said that as more companies wait to go public, and as founders and early employees have a longer wait before their equity pays off, the demand is growing for other liquidity options.
I think the parallel is now growing with the liquidity injection in 1998 post LTCM and the Asian crisis," van Steenis told Reuters.
Total global liquidity is growing faster in real terms than ever before.
But as the bet grew to $6 billion, liquidity became a problem for the firm.
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