My guess from yesterday's Gross Tweet is #4. I especially like the "Cash for Trash" in which he refers to the single A rated collateral the banks were allowed to put up.
In some other news, Sarkozy must be fuming and stomping around Paris in his 3 inch riser shoes so he doesn't look 6 inches shorter then Angela Merkel at their photo ops.
Out of Italy, (and remember that Sarkozy was sure the banks would put on a carry trade, borrowing for 3 years from the ECB at 1% and earning soon to be 7% on Italian 10 year BTPs-although with a 3 year loan, I highly doubt any bank foolish enough to buy BTPs would buy anything longer then 3 years-if only BAC could have grabbed some of that cash!):
Citi exposes the Italian banks' lies as they said they would use proceeds of the LTRO to buy Italian BTPs
" One dose of cold water were comments from the Italian Bank Association that EBA rules won’t permit Italian banks to buy sovereign debt – this is a complete reversal from reports yesterday that indicated that Italian bank collateral would benefit from government guarantees in going to the ECB and lead to incremental Italian bank buying of sovereign debt."
Ah, the 3 card Monti!
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