Thursday, 22 December 2011

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FRANKFURT, Germany (AP) — The European Central Bank flipped its credit tap wide open Wednesday to help Europe's troubled banking system, allowing hundreds of nervous banks to take out a record euro489 billion ($639 billion) in loans.
The move was the biggest ECB infusion of credit into the banking system in the 13-year history of the shared euro currency. It aimed to keep the Europe's debt crisis from choking off credit to businesses — since a credit crunch could cause a continent-wide recession that would make the debt loads hanging over the 17 nations that use the euro even harder to pay.
Many European banks are also having trouble borrowing normally from other banks — everyone is afraid they won't get paid back because the banks they are lending to may have large amounts of risky European government bonds.

THE FALLOUT: What Today's Massive ECB Liquidity Operation Actually Means

PIMCO's Humiliaton Of Europe's Failed LTRO Goes Into High Gear

Citigroup Analyzes The Failure Of The LTRO, Muses On The Upcoming French Downgrade

Gross LTRO Liquidity Injection - €489 Billion; Net: - €210 Billion

Summary - LTRO Represents 20% Of European Bank Deleveraging Needs

Posted by Britannia Radio at 05:45