Friday, November 20, 2009
The Great Unwind (ECB)
"The European Central Bank tightened the rules for the collateral it accepts against loans as it tries to restore the â€œproper functioningâ€ of markets and prepares the ground to unwind emergency liquidity measures. The bank â€œwill require at least two ratings from an accepted external credit assessment institution for all â€ asset- backed securities" issued from March 1, 2010, the Frankfurt-based central bank said today in an e-mailed statement". "Trichet...has indicated the ECB wonâ€™t renew its 12-month auctions of unlimited cash, one of its flagship policies in the crisis, after a third tranche is handed out next month".