What Does ECB’s Record Loan Mean for Europe’s Banks?

by Lauren Mills

Wall Street Journal
December 21, 2011

There are mixed feelings about the implications of the ECB’s three-year long term refinancing operation (LTRO).

Here’s what analysts and economists are saying:

Richard McGuire, Rabobank, wonders:

“Does this record LTRO take-up imply carry trade support for the periphery or more reflect banks’ acute financing difficulties?”

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