Wednesday, December 21, 2011

ECB Moves to Provide Liquidity In Europe

The ECB loaned over $500 billion to European banks. The loans were made at 1% interest and they are not due for three years. The ECB also accepted riskier assets as collateral. This action was taken to help banks turn over short term notes that will mature in a few months. Stock markets rallied on the news but the enthusiasm was short lived.

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