by Bill McBride on 11/24/2011 06:47:00 PM
Note on McAfee: For some users, McAfee incorrectly flagged CR. I've spoken to McAfee, and hopefully this is resolved. You can check Google's site evaluation here.
Thursday, November 24, 2011
The European Central Bank ... may extend loans to banks at maturities of two or three years, according to people familiar with the matter. The longest maturity at present is 13 months.This would be for banks - with haircuts on collateral - and not countries.
From the Telegraph: Germany unmoved by French pleas for more ECB action
Ms Merkel instead used a three-way summit with France and Italy in Strasbourg to insist that new treaty powers to intervene and punish sinner states remained the key focus of Europe's rescue efforts. She said: "The countries who don't keep to the stability pact have to be punished – those who contravene it need to be penalised. We need to make sure this doesn't happen again."
Even suggestions that the ECB could extend longer loans to countries over a period of up to three years appeared to be ruled out. Ms Merkel said: "The ECB is independent, the modification of the treaty does not concern the ECB, which is dealing with monetary policy and financial stability. We are worried about a fiscal policy. It's a very different chapter. It has nothing to do with the European bank."
Posted by Bill McBride on 11/24/2011 06:47:00 PM