ECB reviewing the quality of collateral

I haven’t seen a story for this yet but this ticked through on Bloomberg earlier

I hope the ECB have not been accepting RMBS AAA type shite in return for our money.

You can be pretty sure they’ve been taking RMBS - what else do most banks have to offer? The question is what tranches - hopefully the best 50% at most.

I doubt that they’d touch the CDOs or similar.

I wonder have some of the bonds they’ve taken as collateral been downgraded by the rating agencies, but are still being rolled over? … ck_check=1

Yup, the crunch is heading into a “third phase” alright - the phase where the banks have to start coming clean about the sheer volume of toxic junk polluting the system…