While some believe the ECB's new collateral and loan rules amount to a backdoor QE, allowing...

|By:, SA News Editor

While some believe the ECB's new collateral and loan rules amount to a backdoor QE, allowing banks massive firepower to purchase sovereign debt, the banks themselves think differently. "When investors are constantly asking what you have on your books, and the board is asking you to reduce your exposure, it doesn't really matter," says the treasurer of a major EU bank. "Am I going to buy Italian bonds? No." (see also i, ii, iii)