Central banks will be liable for at least 50% of bond risk on ECB QE programme

According to a report in today’s Frankurter Allegemeine Sonntagszeitung citing unnamed sources close to the discussion In proposed ECB QE plans central banks will be liable for at least half of any losses that may arise from buying bonds issued by their own country German taxpayers would then only partly be liable for risks from other countries but preventing participation in losses from other countries would only deal with one problem among many All part of Draghi’s attempt to appease Germany on QE plans along with the meeting he had with Merkel and Schauble which Eamonn reported yesterday but not necessarily convincing everyone it would seem Draghi – look into my eyes, and repeat after me…

Dutch Finance Minister signals no objection to ECB quantitative easing … maybe

Dutch Finance Minister Jeroen Dijsselbloem in an interview with Het Financieele Dagblad (a Dutch daily newspaper focused on business & finance) published on Saturday signaled he would not object to the European Central Bank (ECB) quantitative easing (QE): QE would give banks “more room to invest and finance companies” “That can definitely give the economy of the Eurozone a boost” But … Dijsselbloem’s spokeswoman Simone Boitelle confirmed the newspaper’s quotes were accurate but said some context had been left out She said Dijsselbloem also said some of the reasons to undertake a QE program had been removed by the recent decline in the value of the euro against other major currencies In addition, she said the minister was not confident a QE program would have a large effect, with ECB interest rates already close to zero and yields on government bonds in many Eurozone countries at or near record lows So, a yes, and no, from JD. Reuters Rare footage of Dijsselbloem at an ECB karaoke night

Bank of Greece requests a stand-by domestic emergency funding line from the ECB

Reuters reports that the Greek central bank asks ECB to allow emergency bank lending line if needed A Bank of Greece official (who declined to be named) said “We have sent a request to the ECB on ELA approval for all four major banks to have a shield for the banking system,” Under ELA, national central banks can lend to commercial banks but have to get approval from the ECB to do so. More at the link – Note that on Friday (Asia time) T wo Greek systemic banks reportedly submitted requests for emergency liquidity assistance (and what a mess that story was ..