ECB Offers Cheap Loans Again
The European Central Bank once again offered cheap three-year loans to banks in the euro region, which quickly soaked up 529.5 billion euros ($712.2 billion) in funding. Analysts had expected the amount to total 470 billion euros.
ECB Rejects Greek Debt as Collateral
Christian Schulz, an economist at Berenberg Bank in London, was quoted saying, “After the downgrade it was clear this was going to happen. The ECB isn’t going to make an exception to its rule on not accepting defaulted collateral ...”
Greece Launches Bond Swap
Greece on Friday took the next step in a second bailout package after Parliament passed a law Thursday that requires all its bondholders to accept losses once a certain percentage of creditors have agreed.
PIMCO’s El-Erian: ‘No More IMF Aid to Europe’
Although Mohamed El-Erian had long advocated for aid to troubled Europe (with an obvious interest in mind), he wants strong strings attached to any lending, especially when it comes to the International Monetary Fund.
European Economy to Contract, Not Expand: EC
Altering its forecast on the state of the European economy in 2012, the European Commission said that the euro area would shrink instead of expanding, largely because of Spain and Italy. The two countries are expected to be in for some difficult times as they cope with various economic woes.
Greek Debt Crisis Weighs on Banks
Europe’s banks are tallying up the losses from Greek sovereign debt, and the picture is not a pretty one. Euro losses in the billions are taking a toll on earnings and banks are posting heavy hits in the midst of a need to find additional capital to meet new banking...
Greece to Force Cuts on Bondholders
The bill, called Collective Action Clauses, will impose the debt swap of existing bonds for new, lower-value debt with lower coupon rates on Greece's creditors.
Eurozone Data Drive Markets Down
For the second day in a row European stock prices retreated as economic data showed unexpected weakness for February, with services and manufacturing output falling.
Larger Bank of England Stimulus Was Overridden
Two of the nine members of the Bank of England’s Monetary Policy Committee were outvoted at the committees last meeting when they sought to boost its stimulus to 75 billion pounds ($118 billion). The majority was concerned that such a move would cause alarm over the state of the economy...
Icelandic Economy Bounces Back From Brink
The government's response to the 2008 default crisis has put the nation back on path of growth.