European Central Bank lowers collateral standards signaling that stress is still rising in European banking sector
Today, the European Central Bank agreed to accept lower-rated asset-backed securities as collateral for loans to European banks. Even after the central bank’s huge provision of cash through its December and February 3-year loan facility, some banks are having trouble funding their operations because they don’t have enough collateral under the former rules to use to secure central bank loans.
Don’t fight the Fed (and the ECB, the Banco Central do Brasil, and the People’s Bank of China) is good advice most of the time–but here’s why it won’t work out so well in 2012
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Germany and France to propose relaxing Basel III rules–French banks would be biggest winners
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...The U.S. downgrade: A reminder of how much other debt still needs to be re-rated
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Jackson Hole bounce arrives in Europe
At the very end of last week traders began to speculate about a big policy announcement from the Federal Reserve at the Jackson Hole conclave of central banks that begins on August 26. Well, the bounce has arrived in Europe.