Stocks surged today as the announcement settled in that six central banks are joining forces to ease terms of currency liquidity swaps. As we have reported earlier here and here, the European Central Bank has recently been increasing its borrowing under the emergency swap facility, which is similar to that set up during the 2008 financial crisis, when lending at one point peaked at $586 billion.
While the Federal Reserve reports the totals that flow through this facility weekly here, it does not provide information on which banks in turn receive loans from other central banks. The European Central Bank ...Continue reading
Since the end of August, the European Central Bank has been drawing on the foreign currency swap line established by the U.S. Federal Reserve Board, recently securing $1.8 billion to lend to European banks, most of it over a three-month time period. But the ECB does not name which banks or institutions are receiving these dollars. Who gets the money is anybody's guess.
In the response of worsening economic conditions in Europe, in late June the Fed announced that it was extending authority for such swap arrangements with the European Central Bank (ECB) and three other foreign ...Continue reading