I am still hearing — but the institution refuses to comment — that there is a global bank in trouble, needing to go to the Fed’s swap window, when all other venues turned their backs on the firm.

With a two-day market-closing holiday in China to celebrate the Japanese defeat in WWII (no comment on that) look for news on Sunday about a possible takeover.

We are entering September 2008 territory, where bank CEOs black cars line up outside 33 Liberty Street in lower Manhattan to meet at the NY Fed and divvy up troubled institutions in order to get markets open on Monday.

Equity markets are buoyed by the Chinese markets being closed for two days (no down slide to set off a contagion) and the thought that the EU may ease on down the road.

Not going say how stupid that is. But relying on the EU to do anything that hints of leadership is a fool’s game.