`` So what will banks do instead: why proceed with all out asset liquidation, and sell anything that is not nailed down. The strawman is that this is capital needed to fund the banks' requirements for higher capital ratios per Basel III and what not. The truth is that banks desperately need any capital just to operate as a going concern, forget some Basel Tier 1 ratio that will only be relevant in 2016. So yes: the bitter truth comes out - recap out; liquidations in, especially of USD-denominated assets. Next step: the realization that he who sells first, sells best... All that is relevant is that suddenly everyone will start wondering what USD-assets do European banks have in inventory that are about to hit any bid in the market. Some hints: stocks, CMBX and, you guessed, Prime-X.''

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