What happens when banks have to repay LTRO loans? [General] - MarketTicker Forums


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User Info	What happens when banks have to repay LTRO loans? in forum [General]
The_venerable Posts: 4864 Incept: 2009-01-31 USD = toxic asset Banned	Spanish and Italian banks are posting their sovereign bonds as collateral for these loans. Is nobody asking what will happen when the value of these bonds declines, and these banks are asked to post evermore collateral? ECB's balance sheet looks really, really bad at this point. ---------- The kingdom is falling. 2012-02-29 16:19:11 Permalink
Eighty6thebs Posts: 4180 Incept: 2007-06-26 It's contained to sub-prime!	Simple. They won't. ---------- "Sounds to me like you guys a couple of bookies" - Billy Ray Valentine "No I am not scared, and neither should you be!" - Iraqi Information Minister 2012-02-29 16:27:21 Permalink
The_venerable Posts: 4864 Incept: 2009-01-31 USD = toxic asset Banned	Well it's not just that, they could just roll over the loans if possible. It won't take 3 years for disaster to happen though if the collateral loses value. Remember what happened in '08 as banks had to keep posting more and more collateral. AIG, Lehman, and a few others didn't have any left by September that year. ---------- The kingdom is falling. 2012-02-29 16:43:03 Permalink