Thursday, February 17, 2011

Marginal Lending Facility Anomaly?

The eurozone’s €15.8bn fat finger? (FT Alphaville)


(And a big H/T to Lorcan Roche-Kelly at Corner Turned for the above chart)
Use of the ECB’s emergency overnight lending facility jumped to €15.8bn on Wednesday — the highest figure since June 2009 — when the thing was first started. It’s a pretty odd move given, as the FT’s Ralph Atkins notes, tthat the facility incurs a penal rate.
What’s going on?
The dominant theory this Thursday is that some bank — some where in the eurozone — made some sort of mistake. Either that or there’s a bank in trouble.
READ FULL POST HERE

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