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As if on cue: ECB Coordinates With Federal Reserve in Lending Dollars to Euro-Area Banks
The Frankfurt-based ECB said that, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, it will conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months. The loans are in addition to the bank's regular seven-day dollar offerings and will be conducted as fixed-rate tenders with full allotment, the ECB said in a statement.

...

Two banks this week borrowed dollars from the ECB in its regular seven-day operation, a sign they are finding it difficult to gain access to the U.S. currency in markets. The premium European banks pay to borrow in dollars through the swaps market is close to the highest level in almost three years.

The ECB yesterday allotted $575 million in its regular seven-day liquidity providing operations, without naming the banks who borrowed the cash. French



Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Sep 15th, 2011 at 09:39:21 AM EST
Get your news early on ET...

Wind power
by Jerome a Paris (etg@eurotrib.com) on Thu Sep 15th, 2011 at 09:44:10 AM EST
[ Parent ]
Clearly
What, you're telling me the ECB allowed the Eurozone banking sector to accumulate massive US$ liabilities without building up a reserve base of comparable size with which to act as a lender of last resort in US$?


Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Sep 15th, 2011 at 09:49:39 AM EST
[ Parent ]
that thread, but that conversation yesterday, put some things into perspective for me.

Wind power
by Jerome a Paris (etg@eurotrib.com) on Thu Sep 15th, 2011 at 09:50:34 AM EST
[ Parent ]
We really should make that our official slogan.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Thu Sep 15th, 2011 at 09:27:14 PM EST
[ Parent ]
As it applies to both "news" and "commentary", we might want to make that get your insight early on ET or get a clue early on ET...

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Sep 15th, 2011 at 09:49:47 PM EST
[ Parent ]
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Sep 16th, 2011 at 02:09:03 AM EST
[ Parent ]
is no longer providing the transatlantic capital flows our economies need. And the guvvermint bankers are stepping in to do the job for them.

Do I see a parallel with the ECB bank liquidity provision mechanim?

i.e. we blithely socialise the risks of lending when the private sector becomes risk-shy.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Thu Sep 15th, 2011 at 12:30:53 PM EST
[ Parent ]
Otherwise inflation will rise, unemployment will rise, disposable income will drop, consumer spending will crash.

Oh, wait...

by ThatBritGuy (thatbritguy (at) googlemail.com) on Thu Sep 15th, 2011 at 02:18:16 PM EST
[ Parent ]

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