Some headlines coming across DJ tape quoting sources, “EU Bank regulator seeks to use EFSF for bank debt guarantees,” This seems to be in addition to sovereign debt. “Guarantees would provide 1-3 year term funding.” The US Gov’t did the same thing in ’08-’09. “Debt guarantee idea faces opposition from national governments.” Not a surprise with so many cooks in this kitchen.

Category: MacroNotes

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3 Responses to “Bank debt guarantee too?”

  1. klhoughton says:

    Waiting for the yield curve whipping if those rumors turn out to be anywhere near true. (Greek 2-year debt at German levels, 4-year debt vaguely resembling the old ITL/USD exchange rate.)

  2. Futuredome says:

    Boy, that Europe is sure creative and trying new things.

  3. dougc says:

    They are running out of tabloids to leak their late day market influencing rumor . EFSF is too small to cover everything and the German parliament is exerting it right of approval on leveraging and insuring debt.