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ECB Admits Mistake In Spanish Collateral Haircut

Tyler Durden's picture





 

For all the monotony of today's ECB press release in which Mario "talking in Keynesian circles" Dragi did his best impression of Diane Sawyer, not even the former Goldmanite could deny that the ECB did a mistake on its Spanish collateral haircut as reported previously:

  • DRAGHI SAYS COLLATERAL MISTAKE DIDN'T AFFECT ECB LENDING
  • DRAGHI: EUROSYSTEM AUDIT COMMITTEE TO ASSESS COLLATERAL USE

Luckily, the ECB has so much credibility that admitting it did not haircut billions in "money good" Spanish bonds will not impact how ze Germans view its monetary flouting prowess one bit. Also, if anyone can explain how ECB lending "was not affected" as a result of flawed collateral calculations we are all ears, because either we really have no idea how crediting works, or Mario Draghi seriously believes everyone out there is a consummate idiot.

 


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Thu, 11/08/2012 - 10:36 | Link to Comment Jason T
Jason T's picture

OT: what happpened to NY finished motor gasoline stocks?  no wonder there are still 1 hour + gas lines.. http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MGFSXNY1&f=M

Thu, 11/08/2012 - 10:41 | Link to Comment Joe Davola
Joe Davola's picture

JIT strikes yet again.  Hey, let's build a smarter planet - one where if there is one snafu in the supply chain, the whole world grinds to a halt.

Thu, 11/08/2012 - 10:58 | Link to Comment NotApplicable
NotApplicable's picture

Always easier to ask for forgiveness than permission.
Gov 101

Thu, 11/08/2012 - 11:06 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Should I not have done that?

Thu, 11/08/2012 - 12:03 | Link to Comment DeadFred
DeadFred's picture

I'm sure it was pure accident they forgot about the haircuts. It's a good thing all these central banks are so transparent so we can help by pointing out their 'mistakes'. One has to wonder how many other mistakes they got away with because no one ratted them out. Forgot to mention we sold all our gold ten times over? Forgot to mention we're selling derivatives on treasuries and volatility that will blow up if things turn south just a tad? Bunch of snakes.

Thu, 11/08/2012 - 10:36 | Link to Comment jekyll island
jekyll island's picture

Give him a break, it was probably just a rounding error. 

 

 

Thu, 11/08/2012 - 11:38 | Link to Comment Enslavethechild...
Thu, 11/08/2012 - 10:38 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

One for you, six for me.

Nope..........no mistake here. Even Steven, just as it should be.

Thu, 11/08/2012 - 10:40 | Link to Comment blue_yeti
blue_yeti's picture

Its very difficult to correctly value Spiderman towels, some are significantly rarer than others, mistake anyone couldve made, cut him some slack...

 

 

Thu, 11/08/2012 - 10:42 | Link to Comment SheepDog-One
SheepDog-One's picture

'HOPING' everyone out there is an idiot. Maybe if I cover my eyes no one can see me and it will all go away. 

Thu, 11/08/2012 - 10:42 | Link to Comment LawsofPhysics
LawsofPhysics's picture

People/corporations make mistakes all the time.  My concern is whether or not a person/corporation is ever held accountable.

Thu, 11/08/2012 - 10:43 | Link to Comment Dr. Engali
Dr. Engali's picture

To be fair about 90% of the people out there are complete idiots.

Thu, 11/08/2012 - 10:49 | Link to Comment Everybodys All ...
Everybodys All American's picture

Collateral who needs collateral. Without collateral there will be no haircuts for instance. /sarc

Thu, 11/08/2012 - 10:51 | Link to Comment ebworthen
ebworthen's picture

As long as people accept hope and promises in exchange for their labor Draghi is a truth teller, even if he is lying through his teeth and out of both sides of his mouth.

Thu, 11/08/2012 - 10:52 | Link to Comment timbo_em
timbo_em's picture

Captain Draghi: "...and thirdly, our collateral rules are more what you'd call "guidelines" than actual rules. Welcome aboard the ECB, bitchez!"

Thu, 11/08/2012 - 10:54 | Link to Comment TrustWho
TrustWho's picture

Of course "consummate idiot", the arrogant Kings or emperors always view the losers in life as "capite censi". The emperors assume capite censi have nothing because they are stupid like animals who have no control over their destiny.

Thu, 11/08/2012 - 10:54 | Link to Comment insanelysane
insanelysane's picture

"...or Mario Draghi seriously believes everyone out there is a consummate idiot"

Calling MDB.

Thu, 11/08/2012 - 11:03 | Link to Comment Nothing To See Here
Nothing To See Here's picture

Prepare for "the ECB is special, it does not need collateral like everyone else" in 3, 2, 1...

Thu, 11/08/2012 - 11:18 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

What he says:  Everything is okee dokee.

 

What he is thinking:  Do not look directly at the cameras.

Thu, 11/08/2012 - 11:22 | Link to Comment Silver Bully
Silver Bully's picture

'or Mario Draghi seriously believes everyone out there is a consummate idiot.'

America just re-elected Obama and the rest of Europe is asking for handouts from ze germans. Yep, I think Super Mario has everyone pegged just about right.

Thu, 11/08/2012 - 11:31 | Link to Comment Madcow
Madcow's picture

The Eurocrats will not rest until youth unemployment is >80% and the entirity of Continental Europe has devolved into anarchy and cannibalism.

That makes perfect sense when you consider the people in charge (IMF, ECB, EU, UN, etc) are - literally - sex criminals. 

 

http://dailybail.com/home/raw-video-molotov-cocktails-tear-gas-riots-in-...

 

Thu, 11/08/2012 - 11:48 | Link to Comment Freegolder
Freegolder's picture

ZH missed the bit where Draghi mentioned the big differences between the Eurozone and the US (and Japan and the UK):

 

Balanced trade

Stable prices

Enormous fiscal consolidation

 

Draghi omitted to mention the mark to market gold of course, I'll forgive him that one.

The EZ leads the world is sorting out its problems, yet they get zero credit for that here.

A deep depression is inevitable, the debt bubble has burst, and the EZ is confronting reality. Why the constant mockery?

Well done ECB.

Thu, 11/08/2012 - 11:58 | Link to Comment Dareconomics
Dareconomics's picture

Draghi Says ECB Stands Ready to Buy Bonds as Economy Weakens - Bloomberg.

Missing from the articles that I read on today's ECB presser except for ZeroHedge, of course, is that Draghi admitted that the ECB did not discount Spanish T-Bills the required 5% for "B" rated countries.

Technically, Spanish banks need to post an additional €16.6bn in new collateral. These banks are very weak and probably insolvent at this point, so Draghi pulled a bureaucratic trick from up his sleeve. He referred the matter to an ECB audit committee that will assess proper collateral use.

Spain cannot be allowed to fail, because it will take the whole eurozone down with it. Since it refuses the ask for a bailout, the ECB has no choice but to deploy any and all tricks it has to maintain the solvency of the banks and of Spain itself.

Those banks will eventually begin failing, but not today.

daerconomics.wordpress.com

Thu, 11/08/2012 - 15:30 | Link to Comment falak pema
falak pema's picture

crew cut or no crew cut...

A crew is a bunch of people; and in Spain its 60% of the under 25s who have their future cut from under their feet; to save the banksta cablal of 60+ oligarchs and their mignons. 

Thu, 11/08/2012 - 20:48 | Link to Comment StychoKiller
StychoKiller's picture

This is a "minion", this is a "mignon"

Do NOT follow this link or you will be banned from the site!