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Spanish Banks May Face €17 Billion Margin Call As ECB Found To

The European Central Bank has Spanish banks borrowed 16.6 billion euros. But the collateral do not even meet the individual requirements of the central bank.

 

It is a subject in which representatives of the European Central Bank , always place a look that will inspire confidence and simultaneously acts annoyed. Repeatedly accuse critics of the ECB, it was almost mindlessly generous with the securities, the banks have to pledge as collateral for their Fed loans, they now accept any junk.

 

And again countered ECB President Mario Draghi stressed such accusations cool. “The risk management of the ECB is really very careful and has earned this recognition, “he said, for example, in the spring, after Bundesbank President Weidmann warned of growing risks in the central bank’s balance sheet. And shortly afterwards the Italians said, even ironically, central bankers made ??their “likes to worry about things that no one else cares to make.”

 

Fed much

... read more at: http://www.zerohedge.com/news/2012-11-04/spanish-banks-may-face-17-billion-margin-call-ecb-found-lie-about-collateral-haircut