Back in December, the ECB held its now famous 3-year LTRO operation, allowing banks to pledge all sorts of liquidity for cheap cash. In the end, banks pledged about 489 billion EUR.Well there’s another operation coming up at the end of February, and it sounds like it’s going to be ginormous.
Several of the eurozone’s biggest banks have told the Financial Times that they could well double or triple their request for funds in the ECB’s three-year money auction on February 29.
“Banks are not going to be as shy second time round,” said the head of one eurozone bank at last week’s World Economic Forum in Davos. “We should have done more first time.”
So it sound like it will be easily over EUR 1 trillion.