The 40 new hires by the ECB makes it appear like they are gearing up to become the EU wide regulator. The Bundesbank's Target2 claims essentially means they have already bailed out Greece.
From Bloomberg:
ECB Drains 211.5 Billion Euros to Offset Government Bond Buys
2012-08-21 11:04:03.134 GMT
By Gabi Thesing
Aug. 21 (Bloomberg) -- The European Central Bank said it drained 211.5 billion euros ($260.3 billion) in seven-day term deposits to neutralize the liquidity created by its government bond-purchase program.
The Frankfurt-based central bank said 57 banks submitted bids totaling 446.8 billion euros. The marginal rate on the term deposits was 0.01 percent.
The ECB sterilizes its government bond purchases to ensure they don’t fuel inflation. The ECB hasn’t bought any government bonds for 23 straight weeks.
ECB Funding Watch: ELA Highest Since July 27
2012-08-21 13:17:15.244 GMT
By Alexandra Harris
Aug. 21 (Bloomberg) -- (Updates ECB data under “WEEKLY” subhead)
Euro Area Funding Watch compiles daily, weekly and monthly functions that track money flows among the ECB and national central banks through the eurosystem.
* DAILY
* Banks borrowed EU1.19m overnight from ECB Aug. 20 vs EU949m Aug. 17, most since July 10
* Banks deposited EU333b overnight w/ECB Aug. 20 vs EU327b Aug. 17, most since Aug. 15
* ECB’s current account holdings fall to EU537m Aug. 20 vs EU542m Aug. 17, least since Aug. 15
* WEEKLY
* ECB allots $9.3b to in 7-day dollar tender at 0.64% Aug. 15; allots $4.5b to 11 banks in 84-day dollar tender at 0.64%
* ECB balance sheet falls to EU3.085t week ended Aug. 17 vs EU3.086 previous week; near record EU3.10t week ended July 13
* ECB balance sheet lending to euro-area credit institutions falls to EU1.208b week ended Aug. 17 vs 1.21b previous; record high 1.26b week ended June 29
* ECB margin calls fall to EU2.18b week ended Aug. 17 vs EU2.23b previous week, lowest since June 22
* ECB’s emergency liquidity assistance rises EU4.16b to EU218b week ended Aug. 17 vs EU214b previous week, highest since July 27
* ECB has not purchased any sovereign debt for 23rd consecutive week
* MONTHLY
* Target2, debts/liabilities between euro area’s central banks:
* Bundesbank claims fall to EU727b in July vs record EU729b June
* Bank of Spain liabilities rise to record EU415b in July
* Bank of Greece liabilities fall to EU105b in July vs record EU106b June
* Bank of Italy liabilities rise to record EU280b in July vs EU274b June
ECB Has Approved 40 New Hires to Fight Euro Crisis, Welt Reports
2012-08-21 06:14:01.597 GMT
(For more on Europe’s debt crisis, see TOP CRIS.)
By Rainer Buergin
Aug. 21 (Bloomberg) -- The European Central Bank has approved 40 new positions to help it fight the euro region’s sovereign-debt crisis, the German newspaper Die Welt reported, citing the bank.
The ECB’s governing council made the decision in July without publishing it, the newspaper said. It was preceded by a controversy between the ECB’s executive board, which wanted to hire more people, and representatives from the national central banks, who opposed the executive board’s proposal, it said.