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User Info What happens when banks have to repay LTRO loans?; entered at 2012-02-29 16:43:03
The_venerable
Posts: 4864
Registered: 2009-01-31 USD = toxic asset
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.
2012-02-29 16:43:03