Update IX: In addition to the fund itself, the ECB will begin buying bonds on the secondary market — quantitative easing, basically.Update VIII: The New York Times has a very good summation here. The bailout basically boils down to:
- A straight-up €60 billion bailout fund.
- Another €440 bill lion in the form of loans.
- Another €220 billion from the IMF.
Update VII: You can watch the live press conference by going here at Bloomberg TV online. Also, it turns out that with the IMF contribution, we’re talking about a $720 billion bailout. fund.
Update VI: It’s official. A €500 billion fund is being established per WSJ. IMF will also contribute funds.
Update V: Press conference going on now here.
Update III: If and when the EU leaders hold their press conference, it will be shown here.
Update II: It’s past 1:00 AM and they’re still negotiating.
Original post: The EU is set to announce a massive bailout fund imminently according to multiple reports.
Basically, this is TARP, but instead of the recipients being banks, they’re countries.
The bailout will involve some kind of direct borrowing from the EU — a breakthrough move establishing a European-wide treasury — plus some kind of leverage.
In the meantime, sans-details, the euro is enjoying a nice rally, though it’s off its highs from earlier this evening.
Full details as they’re made (If they’re made).
And while we wait: Don’t miss our guide to who gets crushed in a Greece default >
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