"UniCredit and the Italian banking association poured cold water on the idea that the fresh and cheap ECB liquidity would prompt banks to buy more government debt.
"I am convinced that liquidity should support the real economy and thus avoid a credit crunch," UniCredit CEO Federico Ghizzoni said in a radio interview on Wednesday.
Banking lobby ABI, which has strongly criticized the European Banking Authority for forcing Italian banks to mark-to-market their domestic government bond holdings, was scathing.
"The EBA rules are a deterrent for buying sovereign bonds, so not even the ECB's important liquidity injection -- of almost 500 billion euros -- can be used to support sovereign debt," ABI director general Giovanni Sabatini told reporters."
http://www.chicagotr...0,7433199.story
this could be real important.......
Started by
trioderob
, Dec 22 2011 03:17 PM
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