Ten days of secret planning to rescue markets: Postponing the inevitable but for how long?

(Reuters) – Britain orchestrated this week’s bold move by central banks to stave off a cash crunch in global markets, helping drive a plan that began to take shape around 10 days ago.

For months, central bankers have tracked with growing concern how the deleveraging among European banks, hurt by the tumbling value of euro-zone debt, was hurting global funding as banks sold off assets and brought cash back home.

Indeed, some central banks had urged the Federal Reserve for some months to put in place cheaper dollar funding, but the Fed had resisted, said a source with direct knowledge of this week’s deal.

 

http://www.reuters.com/article/2011/12/02/us-eurozone-intervention-idUSTRE7B02P620111202

Categories: Economics, Europe

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