ECB leverage 23X, capital base wiped out if asset fall just 4.25%

kenwind

The investor focus on Europe's worsening sovereign-debt crisis has centered on teetering
Greece. That, combined with the bickering between officials of the European Union and
European Central Bank about how to resolve this Gordian knot, has distracted investors from
an important fact.
The ECB itself is up to its neck in risky debt, about 444 billion euros ($637 billion) from the so
-called debt-challenged PIIGS pen—Portugal, Ireland, Italy, Greece and Spain. Given the
ECB's leverage, should one or more countries fail, there's a good chance the write-downs to the
ECB's capital would force the central bank itself to recapitalize.
A report last week from Open Europe puts ECB PIIGS exposure, which includes directly held
bonds, loans and collateral such as PIIGS bonds, as well as asset-backed securities, at about

kenwind

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colderdown

俺说过的，没有苛刻条件的bailout下去，ECB会关门的，然后我们会有north ECB（大牛市），south ECB（大夜市）

Billyboy