ECB and Anglo

[DerKaiser]

Just throwing it out there as another way of looking at things.

Are the ECB largely responsible for the Anglo mess?

I remember noting that from the start to the end of 2009 Central Banks had injected huge amounts of capital into Anglo to prop up the balance sheet following a flight of bondholders and retail depositors.

The ECB has voluntarily kept Anglo on life support for well over a year now, all the while reducing options on how to distribute the burden of the losses.

Is it really fair that the ECB expects the state to repay them what they've put into Anglo?

I have no problem paying back money voluntarily borrowed in respect of keeping the country running, but in my mind that's not the same as keeping Anglo solvent.

 

[Sunny]

But the ECB didn't keep them solvent. They kept them liquid. To be fair, they have done nothing more with Anglo than they did for many Spanish banks among others (including the other Irish Banks).

 

[DerKaiser]

But the ECB didn't keep them solvent. They kept them liquid.

True, I just have the feeling that much of the liquidity they have provided has been paid out to those who are more culpable for the situation Anglo finds itself in than the people who will ultimately have to pay the ECB back.

It's a similar arguement to saying the government had no right to nationalise Anglo, transferring the burden from bondholders and depositors to the citizens of the state.

 

[Sunny]

True, I just have the feeling that much of the liquidity they have provided has been paid out to those who are more culpable for the situation Anglo finds itself in than the people who will ultimately have to pay the ECB back.

It's a similar arguement to saying the government had no right to nationalise Anglo, transferring the burden from bondholders and depositors to the citizens of the state.

I accept your point and there is a very strong argument that the ECB can't expect the Irish taxpayer to pay the entire bill.