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Keyword: ecb

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  • Fears major bank is 'hours from collapse' as millions vote on Greece’s financial future

    07/05/2015 5:44:45 AM PDT · by RKBA Democrat · 61 replies
    Daily Mail UK ^ | 7-5-15 | Lydia Willgress
    (Title edited due to lemgth) Fears the central bank of Greece will collapse following today's referendum are rising as voters flocked to the polls to decide on their country's future. [snip] Officials are set to ask the European Central Bank (ECB) for emergency cash in a bid to stave off financial ruin following tonight's result, it has been reported. [snip] It comes as some sources also suggested ATMs will not open this evening in a bid to save money after EU leaders threatened to withdraw the euro in the event of a 'No' vote.
  • Greece debt crisis: ECB 'to end' bank emergency lending

    06/28/2015 4:54:27 AM PDT · by GunningForTheBuddha · 4 replies
    BBC News ^ | 6/28/2015
    The European Central Bank is expected to end emergency lending to Greece's banks on Sunday, the BBC understands.Well-placed sources told BBC economics editor Robert Peston a decision to end the Emergency Liquidity Assistance (ELA) would be made by the ECB's governing council later on Sunday.Greek banks depend on ELA.Cutting the lifeline could push Greece out of the euro. Some analysts have tweeted that the ECB is likely to cap, but not end, the ELA.
  • Greece May Sign Russia Gas Deal As Soon As Today

    04/21/2015 9:56:47 AM PDT · by tcrlaf · 8 replies
    Zerohedge ^ | 4-21-2015 | Durden
    It appears that Herr Schaeuble will be left in the cold as following comments from the Greek energy minister that a deal is coming soon: -RUSSIA MAY SIGN GAS LINK ACCORD W/GREECE TODAY: ROSSIYA 24 According to Gazprom's CEO comments on Greek TV, following his meeting with Greek PM Tsipras, Russia will guarantee 47BCM/YR of gas via Greece with the link to be built by a Russian-European group at a cost of around E2 billion. SNIP As a reminder, Russia is not acting out of the kindness of his heart, but merely engaging in another calculated move, one which kills...
  • Greece Said To Prepare "Grexit", Drachma, Bank Nationalization Plans

    04/04/2015 12:47:25 AM PDT · by Crapolla · 19 replies
    zero hedge ^ | 04/03/2015 | Tyler Durden
    On Thursday morning, we took an in-depth look at what the progression of events is likely to be in the event a cash-strapped, negotiation-weary Greece finally, for lack of will or for lack of options, fails to scrape together enough cash to pay its creditors. As BofAML notes, a missed IMF payment and/or failure to make interest payments to either the ECB or private creditors over the coming weeks would likely lead to default within 30 days, at which point "mark-to-fantasy" becomes mark-to-market and then "mark-to-default" in very short order. Although Greek officials came out midday with a “categorical” denial...
  • ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt

    03/18/2015 7:30:07 AM PDT · by SeekAndFind · 8 replies
    Zero Hedge ^ | 03/18/2015 | Tyler Durden
    Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB "leaks" that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on "the day after." And incidentally to all those curious what the fair value of peripheral European bonds is excluding ECB backstops, the ECB has a handy back of the envelope calculation: a 95% loss. Which also is the...
  • ECB Pulls The Trigger: Blocks Funding To Greece - Full Statement

    02/04/2015 1:17:23 PM PST · by tcrlaf · 22 replies
    Zerohedge ^ | 1-4-2015 | Durden
    Just what the market had hoped would not happen... *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL *ECB SAYS IT CAN'T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has just given a green light for Greek bank runs... and all the worst parts of the bible (or merely a negotiating move to let Greece see just what kind of chaos this will create). And now finally, after many years...
  • This Is The Beginning Of The End For The Euro

    01/27/2015 10:23:22 AM PST · by SeekAndFind · 21 replies
    TEC ^ | 01/27/2015 | Michael Snyder
    The long-anticipated collapse of the euro is here. When European Central Bank president Mario Draghi unveiled an open-ended quantitative easing program worth at least 60 billion euros a month on Thursday, stocks soared but the euro plummeted like a rock. It hit an 11 year low of $1.13, and many analysts believe that it is going much, much lower than this. The speed at which the euro has been falling in recent months has been absolutely stunning. Less than a year ago it was hovering near $1.40. But since that time the crippling economic problems in southern Europe have gone...
  • Euro crisis, banking crisis, debt crisis - 5 yrs rearranging deck chairs on the Titanic

    01/26/2015 5:24:20 AM PST · by alexmark1917 · 1 replies
    5 years into the euro zone crisis the ECB announces a €1.1 trillion quantitative easing programme to boost economy. Bolder than expected. Draghi Commits ECB to Trillion-Euro Asset-Purchase Plan to Fight Deflation Mario Draghi led the European Central Bank into a new era, committing to a quantitative easing program worth at least 1.1 trillion euros ($1.3 trillion) to counter the threat of a deflationary spiral. The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation...
  • Global economy hopes raised after European stimulus

    01/24/2015 10:50:50 PM PST · by Tolerance Sucks Rocks · 18 replies
    12 News ^ | January 25, 2015 | Pan Pylas
    DAVOS, Switzerland (AP) - The global economic outlook just got brighter after this week's big stimulus from the European Central Bank, leading policymakers from around the world said Saturday. In a panel at the World Economic Forum in Davos, they said a perkier Europe, coupled with a prolonged period of low oil prices, could help shore up the global economy following a period of underperformance that has prompted many forecasters to reduce their growth forecasts. "Lower oil prices and the big decision by ECB could further improve world economic outlook," said Haruhiko Kuroda, governor of the Bank of Japan.
  • "World Running Out of Positive-Yield Bonds"

    01/24/2015 8:58:19 AM PST · by Kaslin · 9 replies ^ | January 24, 2015 | Mike Shedlock
    In the wake of ECB's €60 billion a month QE madness (see "QE already Working" Says IMF Lagarde; Ho-Hum Details Announced; Gold the Place to Be), one might be wondering what it may do to European bond yields. German 10-Year Bond Yield image: click on chart for sharper image Since September of 2013, yield on the German 10-year bond has plunged from around 2% to 0.367%. ECB Risks German Bonds Mismatch Exceeding 100 Billion Euros With €720 billion annual asset purchases, a huge portion of the bonds the ECB buys will be German. Bloomberg explains ECB Risks German Bonds...
  • Fed QE was $4trn over six years, BOJ and ECB spending a combined $1.5trn year.

    01/23/2015 5:16:22 AM PST · by alexmark1917 · 1 replies
    Fed’s $4 Trillion Holdings to Boost Growth Beyond End of QEQuantitative easing may turn out to be a gift that keeps on giving for the U.S. economy. As the Federal Reserve prepares to end its third round of bond buying next week, the central bank plans to hang on to the record$4.48 trillion balance sheet it has accumulated since announcing the first round of purchases in November 2008. That will continue to keep a lid on borrowing costs, helping the Fed lift inflation closer to its target and providing support to a five-year expansion facing headwinds abroad, from war in...
  • First Swiss Franc, Now Euro...RBC To Charge Negative Interest On Euro-Denominated Balances

    01/21/2015 5:52:23 PM PST · by alexmark1917 · 9 replies
    First Swiss Franc, now Euro... RBC TO CHARGE NEGATIVE INTEREST ON EURO-DENOMINATED BALANCES — Russian Market (@russian_market) January 21, 2015 Opinion: Think negative interest rates can’t happen here? Think again In the last week, the markets have had to get used to the idea of the negative interest rate, where you actually get charged for keeping money in the bank rather than going out and spending it. So far, that is restricted to two relatively small economies, both of which are struggling with the likely launch of a massive program of quantitative easing this week in the eurozone. But what...
  • E.C.B. Stimulus Calls for 60 Billion Euros in Monthly Bond-Buying

    01/22/2015 6:38:28 AM PST · by John W · 5 replies
    New York Times ^ | January 22, 2014 | David Jilly & Jack Ewing
    FRANKFURT — The European Central Bank said on Thursday that it would begin buying hundreds of billions of euros worth of government bonds in an ambitious — though some say belated — attempt to prevent the eurozone from becoming trapped in long-term economic stagnation. The bank’s president, Mario Draghi, said the central bank would begin buying bonds worth 60 billion euros, or about $69.7 billion, a month. That is more spending than the €50 billion a month that many analysts had been expecting. The long-awaited program, known as quantitative easing, comes after inflation in the 19 countries of the eurozone...
  • Open-ended European QE set to 'start with a bang'

    01/22/2015 7:12:26 AM PST · by Red Badger · 15 replies
    CNBC ^ | 01/22/2015 | Katy Barnato
    European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday. The long-anticipated introduction of euro zone government bond purchases will bring the ECB's buying program into line with the U.S. Federal Reserve's quantitative easing (QE). The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region's painfully low inflation rate, which came in at an annual minus 0.2...
  • ECB paralyzed by split as irreversible deflation trap draws closer

    12/05/2014 6:07:09 PM PST · by Lorianne · 8 replies
    Telegraph (UK) ^ | Ambrose Evans Pritchard
    The European Central Bank has dashed hopes for quantitative easing this year and acknowledged for the first time that the institution’s elite board is split on plans for a €1 trillion liquidity blitz. Equity markets fell across southern Europe,with Italy’s MIB off 2.77pc, led by sharp falls in bank stocks. Spain’s IBEX dropped 2.35pc. The euro surged by more than 1pc to $1.2455 against the dollar in early trading as speculators rushed to cover short positions. Expectations for immediate stimulus had been riding high after the ECB’s president, Mario Draghi, pledged action “as fast as possible” last month. The bank...
  • Falling inflation a worry for Europe but also the world

    11/23/2014 6:55:14 PM PST · by Tolerance Sucks Rocks · 60 replies
    Reuters ^ | November 23, 2014 | Ross Finley
    (Reuters) - European Central Bank President Mario Draghi has moved closer to launching sovereign debt purchases and data this week will show just how dangerously low inflation has fallen in the $13 trillion euro zone economy. A sickly Europe has held back global economic growth for years, and now it is contributing significantly to powerful forces already dragging down inflation across the globe. A spectacular drop in crude oil prices over the past month will be the center of discussion when ministers from the world's top oil exporters meets in Vienna on Friday.
  • ECB ready to pump €1 trillion into euro zone economy

    11/07/2014 3:51:45 PM PST · by TigerLikesRooster · 16 replies
    Irish Times ^ | Fri, Nov 7, 2014
    ECB ready to pump €1 trillion into euro zone economy Central bank ramps up efforts to rescue single currency bloc from deflation risk The European Central Bank is ready to inject up to €1 trillion of new liquidity into the euro zone economy as it ramps up efforts to rescue the single currency bloc from the risk of Japanese-style deflation, Mario Draghi confirmed yesterday. The ECB president also said the central bank’s governing council was unanimous in its commitment to use further unconventional tools, including quantitative easing, should economic conditions deteriorate. He added that the central bank had stepped up...
  • Europe could have a new problem on its hands: Pro

    09/05/2014 5:49:01 PM PDT · by Lorianne · 6 replies
    CNBC ^ | 04 September 2014 | Europe could have a new problem on its hands: Pro
    On Thursday morning, the European Central Bank surprised markets with a raft of stimulative measures including cuts in interest rates and the commencement of asset purchases. The news sent the euro currency much lower, but currency expert Boris Schlossberg of BK Asset Management identifies another reason why the euro could call even further: fresh concerns over a European Union breakup. ECB president Mario Draghi, in announcing the measures, mentioned that the vote was not unanimous. The strongest economy in the eurozone, Germany, is widely expected to have dissented. "It's a very, very tenuous union in many ways, and we see...
  • France and Friends: Merkel Increasingly Isolated on Austerity

    09/06/2014 4:20:58 AM PDT · by Olog-hai · 13 replies
    Der Spiegel ^ | September 03, 2014 – 04:41 PM | Nikolaus Blome, Ralf Neukirch, Christian Reiermann, Mathieu von Rohr and Christoph Schult
    The debate over Germany’s insistence on eurozone austerity has flared anew as an ailing France continues to demand economic stimulus. The European Central Bank may now be siding with Paris, leaving Merkel looking increasingly alone. […] Berlin is particularly alarmed by the stance taken by ECB head Mario Draghi. At the annual conference of top central bankers from around the world at Jackson Hole, Wyoming in August, Draghi surprised those present by saying “there is leeway to achieve a more growth-friendly composition of fiscal policies.” It was a comment that came close to the kind of debt-fueled growth stimulus measures...
  • Eurozone economy dead in the water, with crisis expected to carry on 'a long time'

    07/24/2014 8:13:54 PM PDT · by Lorianne · 12 replies
    Telegraph (UK) ^ | 22 July 2014 | Jeremy Warner
    It's taken a long time, but the International Monetary Fund finally seems to be talking some sense about the beleaguered deficit economies of the eurozone. In a new analysis of continuing imbalances within the single currency area, it pretty much concludes that the situation is hopeless without the sort of eurozone-wide macro economic policies – monetary as well as fiscal – which are specifically rejected by the high command in Berlin. OK, so it doesn't quite say that, but even so, this will make deeply depressing reading for the struggling economies of Greece, Ireland, Italy, Portugal and Spain.
  • ECB hurls cash at sluggish EU economy, seeks to force bank lending [Banks charge for deposits]

    06/05/2014 7:11:56 AM PDT · by SeekAndFind · 6 replies
    Reuters ^ | 06/05/2014 | BY JOHN O'DONNELL AND EVA TAYLOR
    The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds. The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro's exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight. It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario...
  • German top court to rule on whether ECB (European Central Bank) can buy bonds

    01/30/2014 9:34:56 AM PST · by Olog-hai · 2 replies
    EU Observer ^ | 30.01.14 @ 12:48 | Valentina Pop
    Germany’s constitutional court is expected to rule this spring on the legality of the European Central Bank’s bond purchases, a scheme that has eased the eurozone crisis by calming markets. Udo Di Fabio, who served as constitutional judge between 1999-2011, told an audience at the Berlin-based Stiftung fur Familienunterhmen on Wednesday (29 January) that the court is “deliberating at the moment if the ECB can buy bonds at all.” According to EU laws, the ECB is prohibited from direct government funding, meaning direct bond purchases when a national government tries to sell debt on the markets. But in the past...
  • EU clears way to create joint banking supervisor

    10/15/2013 2:22:45 PM PDT · by Olog-hai · 2 replies
    Associated Press ^ | Oct 15, 2013 11:06 AM EDT | Juergen Baetz
    European Union officials on Tuesday approved the creation of a centralized banking supervisor, marking another step in the 28-country bloc’s long quest to stabilize its financial system. Finance ministers at a meeting in Luxembourg cleared the final legal hurdle to the establishment of the new banking supervisor, which will be operated by the European Central Bank and directly oversee the bloc’s 130 biggest banks.“Now we will start hiring supervisors, rent buildings and start the coming (bank) stress test,” ECB executive board member Joerg Asmussen said. The so-called single supervisory mechanism will be based with the ECB in Frankfurt, Germany, and...
  • European Central Bank hires controversial consultancy for bank audit

    09/26/2013 9:25:31 PM PDT · by Olog-hai · 1 replies
    EU Observer ^ | 25.09.13 @ 09:51 | Valentina Pop
    The European Central Bank (ECB) on Tuesday (24 September) said it hired Oliver Wyman, a US-based financial consultancy, to help out with a thorough audit of the 130 largest banks in the eurozone. The review of the banks’ balance sheets and capital needs is a prerequisite for the ECB to take on a new task—that of a single supervisor (SSM) for these “systemic” banks. Oliver Wyman is a known name in the world of eurozone bailouts and bank “stress tests.” Back in 2006, it famously said the Anglo Irish Bank was the best bank in the world. Three years later,...
  • Angela Merkel wins historic third term in German elections

    09/22/2013 5:37:50 PM PDT · by mandaladon · 40 replies
    The Telegraph ^ | 22 Sep 2013 | Jeevan Vasagar
    Angela Merkel vowed that she would deliver more “successful years for Germany” as exit polls indicated a commanding lead for her party over the main opposition. Angela Merkel is heading for a third term as Germany’s chancellor, as exit polls showed she could even be on course for the historic achievement of an absolute majority in the country’s parliament. An early projection by the state broadcaster ARD on Sunday evening showed Mrs Merkel’s Christian Democrat party (CDU) winning 301 seats in the 598-seat Bundestag, enough to form a government without a coalition partner. Later projections suggested, however, that she could...
  • EU lawmakers back central bank oversight

    09/12/2013 5:38:31 AM PDT · by Olog-hai · 1 replies
    Associated Press ^ | Sep 12, 2013 8:03 AM EDT | Juergen Baetz
    European lawmakers approved legislation Thursday establishing a new, centralized oversight for Europe’s largest banks, marking what is considered a key step toward stabilizing the bloc’s financial system. The centralized bank supervision authority, which will be anchored by the European Central Bank, will be up and running next year following a thorough stress test of banks’ balance sheets. The so-called single supervisory mechanism is the first of three pillars of the bloc’s planned banking union, the cornerstone of efforts to turn the tide on the 17-nation eurozone’s three-year-old debt crisis. Its goal is to make supervision and rescue of banks the...
  • Draghi Flaps His Wings in Europe, US Mortgage Rates Soar

    06/06/2013 5:44:48 PM PDT · by whitedog57
    Confounded Interest ^ | 06/06/2013 | Anthony B. Sanders
    Today, ECB President Mario Draghi said that the European Central Bank (ECB) will keep its main interest rate on hold at a record low 0.5 percent on Thursday, saying that improved economic data in May confirmed its forecast of a gradual recovery from prolonged recession later this year. Draghi sees GDP growth at -0.6%. Oh that tepid news, European sovereign yields rose, some by over 20 basis points. Draghi-fly effect? While US Treasury markets remain relatively quiet today, mortgage rates continue to rise, puttingoa chink in the housing recovery armor. Here is a chart of Freddie Mac’ loan commitment rate...
  • ECB Could Cut Rates After German Output Falls (Turning Monetary Volume to 11)

    04/24/2013 4:10:32 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 04/24/2013 | Anthony B. Sanders
    The Federal Reserve, Bank of Japan, and the European Central Bank are in a race to the bottom … on interest rates. After Germany’s output fell, the ECB is prepared to … turn its monetary volume to 11. Currently, the ECB Rate is at 0.75, but a meeting is coming up on May 2nd where it may be lowered (hopefully to 0.11!). And here is Germany’s Manufacturing PMI Market Survey for April that may drive the ECB to turn up the volume. Europe’s GDP growth is anemic to say the least. With sovereign yields in larger economies already below 2%...
  • Central Banks Gone Wild! South Korea Mimics Bank Of Japan and The Federal Reserve

    04/15/2013 7:13:16 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 04/15/2013 | Anthony B. Sanders
    Imitation is the most sincere form of flattery. Now, South Korea is mimicking the Bank of Japan and The Federal Reserve and is attempting to stimulate economic growth mostly through issuing new debt (15T won), April 16 (Bloomberg) — South Korea plans 19.3t won of additional fiscal support to spur growth, Finance Ministry says in an e-mailed statement. • Stimulus package will boost growth by 0.3 percentage points and create 40,000 jobs • Of the total stimulus amount, 15.8t won will be financed by issuing new bonds and adjusting a debt buyback program • Additional bond issuance may raise bond...
  • Game of Thrones: Gold, Germany, France, Taxes and the Debt Ceiling

    01/15/2013 8:53:48 AM PST · by whitedog57
    Confounded Interest ^ | 01/15/2013 | Anthony B. Sanders
    With Washington DC alight with the buzz of the approaching debt ceiling, Germany wants its gold back from the NY Fed and other central banks. Here is a country-by-country list of country gold reserves. (I hope the Germans find more gold in the New York Fed than we would find in Ft. Knox!) Of course, Germany looks at the USA and wonders how we can borrow SO much money and generate SO little economic growth. 113% increase in Federal Debt held by public since Q2 2008 and a measly 2.57% growth in real GDP. This comes at a time when...
  • European ministers ink deal on bank oversight

    12/13/2012 5:11:51 AM PST · by Olog-hai · 1 replies
    Associated Press ^ | Dec. 13, 2012 12:05 AM ET | SARAH DiLORENZO and RAF CASERT
    The European Union on Thursday took a major step towards one of the most important transfers of financial authority away from national capitals when its member states agreed to create a single supervisor for their banks. The political agreement reached at dawn by finance ministers augured well ahead of the evening start of a summit of the 27 government leaders seeking to set up a banking union. … Under the deal, banks with more than €30 billion ($39 billion) in assets or those that represent 20 percent of gross domestic product of their national economies will be placed under the...
  • Exclusive: Spain ready for bailout, Germany signals "wait" - sources

    10/02/2012 10:16:01 AM PDT · by mojito · 5 replies
    Reuters ^ | 10/2/2012 | Julien Toyer
    Spain is ready to request a euro zone bailout for its public finances as early as next weekend but Germany has signalled that it should hold off, European officials said on Monday. The latest twist in the euro zone's three-year-old sovereign debt crisis comes as financial markets and some other European partners are pressuring Madrid to seek a rescue programme that would trigger European Central Bank buying of its bonds. "The Spanish were a bit hesitant but now they are ready to request aid," a senior European source said. Three other euro zone senior euro zone sources confirmed the shift...
  • UPDATE 1-German media, lawmakers decry ECB 'blank cheque'

    09/08/2012 7:52:32 PM PDT · by TigerLikesRooster · 9 replies
    Reuters ^ | 09/07/12
    UPDATE 1-German media, lawmakers decry ECB 'blank cheque' Fri Sep 7, 2012 7:37am EDT * Conservative media, some Merkel MPs slam ECB bond-buying plans * Eurosceptic lawmakers mull fresh legal action * Merkel allies say ECB acting within mandate * German public wants to halt bailouts - opinion poll By Gareth Jones and Stephen Brown BERLIN, Sept 7 (Reuters) - Germany's conservative press accused the European Central Bank on Friday of writing a "blank cheque" to indebted euro zone states by agreeing to buy their bonds, and some pro-government lawmakers threatened legal action to stop the purchases. ECB President Mario...
  • European Central Bank in nuanced denial of yield cap plans

    08/21/2012 11:33:01 AM PDT · by Olog-hai · 3 replies
    EU Observer ^ | 08/21/2012 @ 09:12 | Honor Mahony
    The European Central Bank has failed to outright deny that a bold plan for the bank to bring eurozone government borrowing costs is in the offing. The Frankfurt-based bank said it was “absolutely misleading to report on decisions which have not yet been taken and also on individual views, which have not yet been discussed by the ECB’s governing council." But the statement implies that the idea to put caps on bond yields—reported in Germany's Der Spiegel—may yet be debated. According to the report, the bank is considering setting up country-by-country thresholds for sovereign bond yields, after which it would...
  • EU: Germany backs Draghi bond plan against Bundesbank

    08/20/2012 3:06:45 PM PDT · by bruinbirdman · 3 replies
    The Telegraph ^ | 8/20/2012 | Ambrose Evans-Pritchard
    Germany’s director at the European Central Bank has thrown his weight behind mass purchases of Spanish and Italian debt to prevent the disintegration of the euro, marking a crucial turning point in the eurozone debt crisis. “A currency can only be stable if its future existence is not in doubt,” said Jörg Asmussen, the powerful German member of the ECB’s executive board. He signalled full backing for the bond rescue plan of ECB chief Mario Draghi, brushing aside warnings from the German Bundesbank that large-scale purchases would amount to debt monetisation and a back-door fiscal rescue of insolvent states in...
  • For The European Crisis To End, This Is What Now Needs To Happen

    08/09/2012 6:15:45 PM PDT · by Ernest_at_the_Beach · 9 replies
    Business Insider ^ | Aug. 6, 2012, 9:51 AM | Simone Foxman
    Last week, European Central Bank President Mario Draghi laid out the framework for the next developments he wants to see in Europe. Considering how important the ECB has been in slowing the crisis, it is likely that the ECB will get what most of what it wants.Draghi's demands are just a few of the many steps European leaders will need to take in the medium-term in order to keep the monetary union afloat.Depending on the time frame for these developments, we could see more sovereign debt restructurings and bailouts.Here are the next steps to look for:1. EU leaders need to...
  • ECB's watchdog could get power to order bank closures—sources

    08/06/2012 10:41:27 AM PDT · by Olog-hai
    Reuters ^ | Wed Aug 1, 2012 3:35pm IST | John O'Donnell and Marc Jones
    The European Central Bank's watchdog for banks could get the power to order the closure of lenders in what would be a radical step to tackle the crisis, prompting concerns by policymakers that such responsibility could backfire. The plan remains subject to intense debate between the ECB, the European Commission and member states, but officials and policymakers who spoke to Reuters have outlined a framework of how an ECB-sponsored über-watchdog could work. Speaking on condition of anonymity, they said the latest plans envisage giving the eurozone's central bank the remit to police far more than just the currency area's 25...
  • Dr Bernanke to Investors: “How about NO!” to Instant Monetary Relief

    08/01/2012 12:35:29 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 08/01/2012 | Anthony B. Sanders
    Like Dr. Evil in the movie “Goldmember,” Dr. Bernanke answered the question today about instant monetary relief: “How about NO!“ That is, no change in the Fed Funds Target. Or Twist or QE3. But he did say that he is willing to do additional monetary easing if necessary to boost economic growth. “The committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.” Not surprising in the least. The US has morphed into...
  • Euro-saving operations due within 'days,' says Juncker

    07/30/2012 2:12:34 PM PDT · by Olog-hai · 9 replies
    EU Observer ^ | 07.30.2012 @ 09:28 | Valentina Pop
    Eurogroup chief Jean-Claude Juncker has said there is "no time to lose," as the world talks about a eurozone breakup, with joint action by the European Central Bank and the eurozone bailout funds expected in the coming days. "We have come to a crucial point. There is no more time to lose," Juncker said in an interview published both in Le Figaro and Süddeutsche Zeitung on Monday (30 July). ECB chief Mario Draghi last week said the bank was ready to do "whatever it takes to preserve the euro" and hinted at more government bonds being bought up, a move...
  • Support for Spain's PM falls sharply after new austerity steps

    07/29/2012 7:17:13 AM PDT · by Olog-hai · 11 replies
    Reuters ^ | Sun Jul 29, 2012 8:42am EDT | (Reporting by Julien Toyer; Editing by Mike Nesbit)
    Support for Spanish Prime Minister Mariano Rajoy fell sharply in July after his government announced a new round of deep spending cuts and tax hikes to fight the sovereign debt crisis, an opinion poll showed on Sunday. … Since Rajoy won the elections by a landslide last year, Spain has become the new front line of the 2½-year debt crisis, and the government has implemented several packages of structural reforms and austerity measures, the latest worth €65 billion ($80.4 billion) until 2014. … While 74 percent of the 1,000 people interviewed say they have a negative view of the government,...
  • European Central Bank 'ready and waiting' to oversee banks

    07/17/2012 10:55:36 PM PDT · by Olog-hai · 2 replies ^ | 17 Jul 12 07:44 CET | (AFP/jcw)
    The European Central Bank (ECB) could take on the key role of supervising the eurozone's strained banking system very quickly if necessary, a German financial daily reported on Tuesday. "The institution is credible; it could do it and quickly," French central bank head Christian Noyer told Tuesday's edition of Germany's Handelsblatt business daily. "All we need is a plan for overall supervision of the eurozone banks. It that was ready today, then you could put it into effect tomorrow," he said. …
  • IMF tells eurozone to turn on printing presses

    07/17/2012 3:54:50 AM PDT · by Olog-hai · 1 replies
    EU Observer ^ | 16.07.12 @ 18:09 (July 16) | Valentina Pop
    The euro crisis continues to weigh down the global economy, the International Monetary Fund said Monday (16 July), putting pressure on the European Central Bank to lower its interest rate even further and issue more cheap loans to the banks. "There is room for monetary policy in the euro area to ease further. In addition, the ECB should ensure that its monetary support is transmitted effectively across the region and should continue to provide ample liquidity support to banks under sufficiently lenient conditions," the IMF said in its annual World Economic Outlook. … The specific reference to the ECB is...
  • Exclusive: ECB mulls scrapping rating rules for government bonds: sources

    06/21/2012 10:13:06 AM PDT · by mojito · 7 replies
    Reuters ^ | 6/21/2012 | Andreas Framke and Marc Jones
    The European Central Bank is discussing a medium-term plan to scrap rating rules on euro zone sovereign bonds and instead set their value when used as collateral in lending operations on its own internal assessment, central bank sources said. With the ECB not yet ready to take over the technical but highly political responsibility for rating sovereigns, the bank's policymakers will also discuss more immediate ways to help Spain and its banks at their meeting on Thursday, such as further widening the types of collateral Spanish banks can use. The discussion come as Spain braces for a downgrade from small...
  • Markets Are Really Going Wild Ahead Of Huge ECB Decision

    06/06/2012 5:15:03 AM PDT · by blam · 8 replies
    TBI ^ | 6-6-2012 | Joe Weisenthal and Gus Lubin
    Markets Are Really Going Wild Ahead Of Huge ECB Decision Joe Weisenthal and Gus Lubin Jun. 6, 2012, 4:12 AM Later today the ECB makes its decision on interest rates. The range of forecasts is all over the map, though the majority of economists think there will be no change. That being said, markets are booming. [And booming even more—update 6:45 EDT] Italy is up 2.3%. Germany is up 1.7%. Spain is up 3.7%! Dow futures point to a 100 point open. Gold and silver are rallying very hard. Other than ECB anticipation, the other big news is the confirmation...
  • ECB's (European Central Bank president Mario) Draghi Calls For Banking Union

    05/31/2012 1:06:21 PM PDT · by Olog-hai · 4 replies
    Fox Business ^ | May 31, 2012 | (Dow Jones Newswires)
    European Central Bank President Mario Draghi called on European politicians to come up with a vision for the euro zone for the years ahead to better tackle the region's debt crisis and to restore confidence, with greater centralization of financial sector regulation as the first possible step. "The sooner the vision is clarified the better for the European Union," Draghi said Thursday at a hearing in front of the European Parliament's Committee of Monetary and Financial Affairs. More centralized banking supervision is necessary for large banking groups that are systemically significant for the financial sector of a country, he said....
  • Report: ECB Halts Operations With Several Greek Banks

    05/16/2012 8:55:31 AM PDT · by tcrlaf · 5 replies
    FoxBusiness ^ | 5-16-12 | FoxBiz
    The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalised, euro zone central bank sources said on Wednesday. The ECB declined to comment. The ECB only conducts its refinancing operations with solvent banks. With no access to ECB funds, the banks concerned must go to the Bank of Greece for emergency liquidity assistance (ELA).
  • The Pain in Spain Lies Mainly in The Bailout - Redux of "Charge of the Light Brigade"

    04/04/2012 11:47:18 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 04042012 | Anthony B. Sanders
    Apparently, Prime Minister Rajoy is watching the Greek Debt Tragedy carefully and learned that the “cure” can be worse than the illness. Spain’s debt auction was a massive failure. Each of the PIGS (Portugal, Italy, Greece and Spain) saw large spikes in their 10 year Sovereign bond yields. The news for Spain is not good. Real GDP is falling, unemployment is at 23%. And other Eurozone countries aren’t doing so well either. I was on CNBC’s Squawkbox (Asia) last night discussing Spain and the ECB’s actions. I did say that Spain is a ticking bomb waiting to detonate. And you...
  • Europe: We've Done All We Can, Now It's America's Turn To Help

    02/13/2012 3:03:26 PM PST · by SeekAndFind · 33 replies
    Zero Hedge ^ | 02/13/2012 | Tyler Durden
    Cue the fireworks in 3...2...1... FRIEDEN EUROPEANS CAN'T DO MUCH FOR GREECE BEYOND AGREEMENT - BBGFRIEDEN: GREECE NEEDS STRUCTURAL REFORMS, SHORT-TERM FINANCING - BBGFRIEDEN: GREECE HAS HISTORY OF PROBLEMS IMPLEMENTING DECISIONS - BBG And... drumroll please: FRIEDEN SAYS HE WISHES U.S. MORE INVOLVED IN STRENGTHENING IMF - BBG Translation: Hey America, we've done all we can, now it's your turn to sustain the Ponzi. Because if we go, you go.The upside: think of just how much faster the latest and gratest $16.4 trillion debt target will be breached if America simply issues Greek bonds with a US guarantee. Like...
  • Ministers participating in the "great train robbery"

    02/07/2012 1:29:22 PM PST · by JerseyHighlander · 5 replies ^ | February 7, 2012
    This is a google translate translation: Ministers participating in the "great train robbery" First registration: Tuesday, February 7, 2012, 16:28 The legal use Katsios was perfectly clear, speaking Tuesday at noon in Makis Triantafyllopoulos and zougla Radio . In the circuit of corrupt government officials, tax collectors, managers and auditors of SDOE various institutions involved and politicians. The new element, however, that makes the difference is that between those policies, are ministers. The scam is repeated over time and after the introduction of Value Added Tax in 1987, namely how the circuits set up the "Great Theft of the Nation"...
  • Measure of Fear: Banks Bunker Hundreds of Billions in Deposits at ECB

    12/27/2011 1:25:39 PM PST · by Olog-hai · 3 replies
    Der Spiegel ^ | 12/27/2011
    The sum of overnight deposits at the European Central Bank (ECB) is often considered to be an indicator of the level of fear brewing within the financial sector. The greater the degree of distrust between banks, the more money banks tend to deposit on a daily basis with the ECB, where interest rates are low, but deposits more secure. This week has seen the level of deposits at the ECB's overnight facility rise to close to €412 billion ($538.4 billion)—the greatest amount seen since the euro's introduction, and representing a single overnight increase on Monday of €65 billion. The previous...