Financial Times FT.com

Subprime fall-out

Scramble for cash reflects fears for system

By Michael Mackenzie and Saskia Scholtes in New York

Published: August 12 2007 18:19 | Last updated: August 12 2007 18:19

In times of stress, investors quickly appreciate why “cash is king”.

The surge in money market borrowing rates last week that prompted a big injection of extra funds by global central banks was the clearest sign so far financial institutions are scrambling for cash and becoming increasingly fearful.

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