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"Sold to you!" If the ECB wants to provide the bid for Italian paper, EU banks are only too...

"Sold to you!" If the ECB wants to provide the bid for Italian paper, EU banks are only too happy to unload it. "The market is still liquid as hell for those that want to sell. We managed to sell off half of our holdings in one morning," says one giddy banker.
Comments (3)
  • What else is now? Central banks accommodating the institutions who took huge risks and are on the verge of losing
    11 Nov 2011, 07:08 AM Reply Like
  • Transfer of risk... Note that the ECB does not take writedowns on this debt. How will that work? Mark to fantasy for eternity?

     

    They are setting themselves up for failure. ECB nor any CB should be involved in buying a countries bonds. Don't even think the ECB is legally allowed to buy bonds
    11 Nov 2011, 07:09 AM Reply Like
  • yes this is going into grey territory on the law part...but they have breaking them for years...but it seems the ECB will have to buy them all....even the new issue yesterday had their hands all over it...thru a back door of course
    11 Nov 2011, 07:14 AM Reply Like
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