Article: Closing the dustbin lid; The European Central Bank.(The ECB gets tougher with banks)

Banks will soon find it a bit harder to game the euro-zone's liquidity support

NO ONE could accuse the European Central Bank (ECB) of taking its lead from America. While policymakers there contemplate the salvation of Fannie Mae and Freddie Mac, the troubled government-sponsored mortgage firms, the ECB is set to tighten up its rules to ensure that what it offers to banks is strictly liquidity support, and nothing more. A change to the rules that govern its money-market operations could be agreed on by the bank at its next rate-setting meeting on September 3rd and 4th.

If so, it will mark a minor reversal in a global trend. As the credit crunch has ...

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