An Interesting LTRO Factoid

 Jens Weidmann, head of the German Bundesbank attacked Mario Draghi regarding "increasing risk stemming from certain ECB policies", further adding that Germany, the biggest Euro-zone creditor sees risks and the potential of the ECB damaging their reputation stemming from the ECB's willingness to loosen collateral restrictions; Weidmann called on Drahi to make a quick return to stricter collateral rules.


I find this news interesting considering some of the LTRO details have emerged and half of the 800 banks in the Euro-zone receiving LTRO loans were GERMAN! Which is surprising in its own right.


Clearly Weidmann's criticism of ECB collateral was not an issue when collateral rules were relaxed way back when for the second LTRO, it only seemed to become an issue when the level of participation of German banks became clear.