Bravo to the ECB for drawing a line on what collateral it won't accept (defaulted bonds), but...


Bravo to the ECB for drawing a line on what collateral it won't accept (defaulted bonds), but don't think central bank funding of Greek paper is finished. National central banks - through the ELA program - are allowed to accept collateral the ECB won't, meaning Greek banks (and French too) can continue to fund their defaulted sovereign holdings.

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  • Angel Martin
    , contributor
    Comments (1370) | Send Message
     
    ok, so the ECB won't accept bonds in default as collateral (it has some standards!)

     

    ...but what is the haircut on forged US treasuries?

     

    http://reut.rs/wrRlT6
    28 Feb 2012, 10:48 AM Reply Like
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