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They completely ignored liquidity until they saw a "well-capitalized" Lehman Brothers collapse.
If it wants to ease the rate, for instance, it keeps adding liquidity until banks react by reducing overnight rates to the target level.
The ECB had hoped to reverse this shrinkage through another, more extended round of long-term funding operations, providing liquidity until 2018 at a fixed rate of just 0.15% a year.
Much of the money Asian companies owe to overseas banks and investors has been rescheduled and won't affect current account balances or market liquidity until next year.
The Fed could break this fever easily by soaking up excess liquidity until the gold price falls below $400 an ounce.
Bernanke should let short-term interest rates float and simply mop up the excess liquidity until the price of gold comes down to a tad below $400 an ounce, a price still above the average of the past ten years.
Similar(51)
Previously, it had committed to providing the low-cost liquidity only until mid-January, making loans to banks at 1 percent interest, provided the institutions could offer collateral.
UBS has offered to lend its customers up to 100percentt of the value of the securities until liquidity returns.
The head of Greece's banking association, Louka Katseli, told reporters: "Liquidity is assured until Monday, thereafter it will depend on the ECB decision".
Regulations for customer accounts did not clearly prohibit many of the transactions that MF Global used for its liquidity, at least until its final days when it transferred customer money that should not have been touched.
Here's the statement: The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013 Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com