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Old 05-16-2012, 03:10 PM
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Silken Silken is offline
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and it just keeps getting better.,. or not

http://www.reuters.com/article/2012/...84F0SN20120516
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  #12  
Old 05-17-2012, 09:06 AM
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Lorian Lorian is offline
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It's dangerous to make conclusions based on specific data instead of the whole of the picture.
The names of the banks aren't given. Their size/impact? Unknown.

And a comment on that Reuters article:
Quote:
The ECB only conducts its refinancing operations with solvent banks. Banks which fail to meet strict ECB rules but are deemed solvent by the national central bank (NCB) concerned can nonetheless go to their NCB for emergency liquidity assistance (ELA).
Ehm, remember those two big Long Term Refinancing Operations of the ECB?
Here is the list of the open market operations:
http://www.ecb.int/mopo/implement/omo/html/key.html
Here is the "List of eligible marketable assets":
http://www.ecb.int/mopo/assets/asset.../index.en.html
The used codes in that list are explained on:
https://mfi-assets.ecb.int/codes_EA.htm
There is only 1 conclusion to draw from this: despite all the talk about 'strict' requirements, the exact opposite happened, the ECB relaxed those conditions/rules for eligible market assets, as collateral for their LTRO loans, to never seen before levels.
So all in all, this is once again a story of completely contradicting talk and action.

So we should be wary to base general markets conclusions on reports like these. It's unsure in which direction. Just some weeks ago, rating agencies increased Greeces rating. This is also contradicting with this.
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