EU Banks, ECB Liquidity & Sovereign Debt

A useful overview of how the ECB’s recent “non-standard” measures could help EU banks reverse their large reduction in sovereign debt holdings in recent months (as revealed in updated EBA stress test numbers). Back door monetary financing of public sector deficits? Surely not….
EU banks slash sovereign holdings, Financial Times, 10 Dec 2011.
On a related topic, also have a look at this piece on money laundering of EU rescue funds via the IMF…
Cash for credibility, The Economist, 10 Dec 2011.