ECB taking lower quality collateral vs USD lending

[Skip to the end

Trichet urges banks to lend after recovery begins (Update2)

By Simon Kennedy and Anne-Sylvaine Chassany

Trichet acknowledged his own central bank had taken on risk by boosting liquidity and accepting lower-rated securities as collateral for loans.

“We’re taking risks and we’ve made decisions that increased our risks, because we were facing a systemic liquidity crisis of first importance,” he said. The ECB is an “inspirer of confidence,” Trichet said.

Yes, and now with the Fed’s money via the swap lines, and into a slowing economy.


One reply on “ECB taking lower quality collateral vs USD lending”