Breakingviews-ECB must give bank sickness long-term cure
By Neil Unmack
LONDON, Sept 20 (Reuters Breakingviews) - The European Central Bank is flooding Europe with short-dated funds to ease money market tensions. But banks are still struggling to issue long-term debt, increasing the risks of a dangerous credit crunch. The ECB should ease the strain by setting up a longer-term facility.
Full view will be published shortly.
Get Breakingviews alerts directly to your inbox three times a day. To sign up click here: www.breakingviews.com/TOPNewsSubscription
-- The Markit iTraxx Europe index of credit-default swaps tied to senior bank debt was at 291 basis points on 21 Sept, more than 130 basis points higher than after the collapse of Lehman Brothers in 2008.
-- No European banks have sold public senior unsecured bonds since early July, according to Societe Generale.
-- Euro zone banks borrowed 201 billion euros from the European Central Bank at its weekly refinancing operation on Sep. 20, this highest volume since early February.
-- Reuters story: Banks take 201 bln euros in ECB weekly tender [ID:nL5E7KK11R]
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
-- For previous columns by the author, Reuters customers can click on [UNMACK/]
(Editing by Peter Thal Larsen and David Evans)
((email@example.com)) Keywords: BREAKINGVIEWS ECB/LIQUIDITY
(C) Reuters 2011 All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
- Indian diplomat Khobragade was strip-searched after arrest in U.S
- UPDATE 3-U.S.' Kerry voices 'regret' to India over diplomat case
- India trims perks for U.S. staff in dispute over envoy's New York arrest
- CORRECTED-Mega Millions winning lottery tickets sold in California, Georgia
- UPDATE 2-"Great Train Robber" Ronnie Biggs dies aged 84