It looks like a real nasty fight is brewing between the HKMA and the HKSAR Govt.
It is as if GW Bush is going to battle against Ben Bernanke...
A lot of colourful details about the conflict between HKMA CEO Yam and HKSAR CE Tsang emerging. All stemming from the political backlash and counter backlash of the Lehman 'Mini Bond' affair.
Anyhow, as Tsang forces banks to repay part of what investors lost on Lehman, Yam is behind the banks. Yam is encouraging the banks to repeat the two finest words the British Empire gave to its colonies - "Fuck Off".
So Tsang is saying, "Everyone gets old, even Yam" implying Yam should follow the terms of his contract and leave next year.
And Yam returns with a piece on his blog about the risk and Moral Hazard with the government's 100% guarantee (last paragraph) on all HK deposits. And staying ever so on message with the labeling of "temporary", as if a taunt to the govt implying that the guarantee will be anything but temporary.
Wow. intra govt struggle with our banking system at stake.