Another Global Banking Sector Bailout / Can Kicking Exercise
September 15th, 2011Europe: The new Lehman Brothers.
Via: Daily Ticker:
Stocks surged in the U.S. and Europe early Thursday while Treasury prices tumbled on news of a coordinated easing by global central banks.
“The Governing Council of the European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year,” the ECB said in a statement.
Translation: The world’s central bankers will provide as much money as necessary until year-end to stem a brewing funding crisis among European banks. The move follows a report yesterday that two European banks were unable to get short-term dollar funding in private markets and were forced to tap the ECB for $575 million.
