MercoPress. South Atlantic News Agency
Major Central banks come to the rescue of Euro commercial banks
More liquidity in dollars from the ECB, Federal Reserve, Bank of England, Bank of Japan and Swiss national bank Major central banks around the world will cooperate to offer three-month US dollar loans to commercial banks in order to prevent money markets from freezing up because of Europe's sovereign debt crisis.
The European Central Bank said it would hold three fixed-rate operations between October and December to offer banks as many dollars as they needed in order to ease any funding crunch in the year-end period.
The announcement sharply boosted European bank shares and the Euro. Shares in French bank BNP Paribas jumped as much as 13% before coming off their highs.
”The European Central Bank has decided, in coordination with the (US) 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.
Some European banks have struggled to obtain dollar funding in the last several months as lenders have become increasingly nervous about the euro zone debt crisis and the global economic slowdown.
The ECB already offers seven-day dollar loans every week, and this offer was tapped for the second time in a month on Wednesday. Previously, banks had not used the ECB dollar operation since February.
The Federal Reserve maintains dollar swap lines with the ECB and other central banks in order to ensure that they can obtain additional supplies of dollars when needed.
Meanwhile stocks extended gains Thursday after the plan by global central banks to reintroduce dollar liquidity into the strained European banking system, overshadowing soft US economic data.
The Dow Jones industrial average markets gained 138.05 points, or 1.23%, to 11,384.78. The Standard & Poor's 500 Index rose 13.91 points, or 1.17%, to 1,202.59. The Nasdaq Composite Index climbed 25.69 points or 1.00% to 2,598.24.
European stocks were up 1.8%, reflecting strong gains. The Nikkei average climbed nearly 2%, moving away from a 2-1/2 year closing low hit the previous day as investors bought back shares after France and Germany said Greece's place remains in the Euro zone.
Top Comments
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Read all commentsonce again they turn to the british and americans, plus japan to help them out,
Sep 15th, 2011 - 06:55 pm 0it seems the only ones who thinks the british are broke, are the silly argie bloggers, who no nothing of money,
but you notice no one asked the south americans for help.
just goes to show, they are not as rich as they have been told,
briton, you're making a fool out of yourself by being tool and supporting psychopaths who are actually ruin the world with pumping more FIAT (bogus) dollars into the economy. It will hurt you in the long term, me and many more people.
Sep 15th, 2011 - 07:18 pm 0Those central banks of the nations that you just mentioned (actually they are private banks, but tools like you are incapable of understand that) aren't helping the world. They are helping the zombie banks that keeps the US and Europe in this missery (and increase inflation around the world). Do you understand that or just plain stupid?
If you haven't noticed the news (rumors from Reuters) that the PIIGS nations were begging the BRIC nations for help, but said no, though they are interested in buying their hard assets (what will happen eventually). So here you go again as usual, making a fool of yourself, lack of education of a subject you like blabber about. Don't you get tired of that? There are thousands of idiots like you and that's why the UK isn't capable of fixing their real issues that is robbing them in day light (bank of England that is printing money from thin air at close to ZERO procent)
Here do your homework and do yourself a favor by stopping being a fool.
http://www.businessinsider.com/breaking-ecb-and-fed-announce-new-liquidity-measures-markets-surging-2011-9
if you was that clever you would not the truth would you not,
Sep 15th, 2011 - 07:29 pm 0as you do not,
then you dont know the truth,
for you belive only what you want to belive,
and the rest of us know nothing,
interesting mmm
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