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[NYBob]

ECB Balance Sheet Increases to Record $3.55 Trillion
After Loans to Banks Dec 29th, 2011 13:23 by News
Dec 29 (Bloomberg) —

The European Central Bank’s balance sheet soared to a record
2.73 trillion euros ($3.55 trillion) after it lent financial
institutions more money last week to keep credit flowing to
the economy during the debt crisis.

The ECB last week awarded 523 banks three-year loans totaling
a record 489 billion euros to encourage lending to companies
and households and prevent a credit shortage. Barclays Capital
estimates the loans injected 193 billion euros of new money
into the system, with 296 billion euros accounted for by
maturing loans.
So far, banks are parking the money back at the ECB.
Overnight deposits at the central bank increased to an
all- time high of 452 billion euros yesterday.

[Source]

JK Comment: Debt, Debt and more Debt. Sounds reminiscent of what
occurred in the US a few years ago. Central bank provides huge
bailout to local banks to loan money to businesses and
households in effort to jump-start economy.
Only the banks don’t lend the money, they just place it back on
deposit with the central bank, defeating the “intended purpose”
of the bailout…if that is really the “intended purpose”.

http://www.bloomberg.com/news/2011-12-28/ecb-balance-sheet-increases-to-a-record-3-55-trillion-on-loans-to-banks.html

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