EU Leaders Praise ECB Supervision Agreement, Market Shrugs

Tyler Durden's picture

Rightly so, the FX and equity futures markets are almost entirely ambivalent at the farce that at 430am in Brussels, the EU leaders announce a compromise agreement on ECB banking supervision:

  • *BARNIER HAILS 'HISTORICAL ACCORD' ON ECB BANK OVERSIGHT
  • *BARNIER SAYS EUROPE HAS SHOWN 'CAPACITY TO TAKE ACTION' (yay)
  • *MOSCOVICI SAYS SUPERVISION IS FIRST STEP IN EURO BANKING UNION
  • *MOSCOVICI SAYS ECB WILL BE SUPERVISOR FOR ALL BANKS
  • *SCHAEUBLE SAYS AGREEMENT REACHED ON EU30B OVERSIGHT THRESHOLD
  • *BARNIER SAYS SUPERVISOR IS FUNDAMENTAL FOR FINANCIAL STABILITY
  • *BARNIER SAYS ECB OVERSIGHT NEEDS PREPARATION OF AT LEAST A YEAR (umm)
  • *ECB COUNCIL WON'T HAVE FINAL SAY ON BANK REGULATION: SCHAEUBLE (oops)

Of course, none of this matters - what is the ECB going to tell them "de-lever more!", "buy less of your sovereign's debt?" Until there are pooled deposit guarantees (nein nein nein) this is irrelevant and markets are treating it thus - no matter the PR efforts.