ECB pumps record €442bn into system The European Central Bank has pumped a record €442.2bn into the eurozone banking system in a first-ever offer of unlimited one-year funds as it battles continental Europe's severe recession. The results of the operation, part of ECB efforts to revive the eurozone economy by rejuvenating the financial system, highlighted expectations that liquidity will not be available again on such favourable conditions. The previous largest amount injected in a single ECB operation was €348.6bn in December 2007. Demand for the one year funds - offered at the ECB's main policy rate of just 1 per cent - appears to have been boosted significantly by financial markets' growing conviction that ECB interest rates will not fall any further. The operation is expected to push down significantly market borrowing costs, including 12 month interest rates, which are already lower than in the US. Julian Callow, European economist at Barclays Capital, added: "This gives the banking sector greater confidence still in order to be able to make loans and acquire assets."
The European Central Bank has pumped a record €442.2bn into the eurozone banking system in a first-ever offer of unlimited one-year funds as it battles continental Europe's severe recession.
The results of the operation, part of ECB efforts to revive the eurozone economy by rejuvenating the financial system, highlighted expectations that liquidity will not be available again on such favourable conditions. The previous largest amount injected in a single ECB operation was €348.6bn in December 2007.
Demand for the one year funds - offered at the ECB's main policy rate of just 1 per cent - appears to have been boosted significantly by financial markets' growing conviction that ECB interest rates will not fall any further.
The operation is expected to push down significantly market borrowing costs, including 12 month interest rates, which are already lower than in the US. Julian Callow, European economist at Barclays Capital, added: "This gives the banking sector greater confidence still in order to be able to make loans and acquire assets."
That means that all eurozone banks received as much ultra cheap medium term liquidity as they thought they needed. It doesn't change their risk aversion, but it takes away any excuse not to lend linked to financial markets. In the long run, we're all dead. John Maynard Keynes
a first-ever offer of unlimited one-year funds
Patches upon patches... A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
But it means that bnaks are flush with cash (alongside tons of toxic assets, of course...) In the long run, we're all dead. John Maynard Keynes
'It starts to hint that this is more a renaming, taking in some new management who seem to have financial expertise, and SCO keeps skipping along as unXis, with the dangerous litigation spun off safely into a litigation troll.'
Surely there must be some management team ready to turn a functioning company into a bloated, debt-ridden, zombie pyramid scheme that can create massive layoffs and economic dislocation as it collapses after a couple of years of desperate efforts marked by sleazy business practices, outright fraud and wholesale bribery?
I'm in.
Anyone else?
oh, wait... ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
Surely there must be some management team ready to turn a functioning company into a bloated, debt-ridden, zombie pyramid scheme...
The previous largest amount injected in a single ECB operation was €348.6bn in December 2007.
why am i getting visions of botox shots when i read this? ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
