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ECB Deposit Facility Usage Hits New Record

Tyler Durden's picture


Not much to say here that has not been said daily for the past 2 weeks: the ECB's Deposit Facility use soared to a new all time high of €453 billion, and increase of €7 billion overnight and higher than, well, ever. The conclusions here are well known - there was no seasonality to the year end spike (because it is now next year), and the LTRO cash is not being used, as pessimistically expected here first. When the next LTRO prices on February 29, expect this number to peak at around €700 billion. And so LTRO by LTRO, the ECB will prefund the entire roughly €2-3 trillion capitalization shortfall in European banks but not before the 3rd 2012 European bank stress test tells us banks only need €0.69 billion in capital (and Dexia is fine despite its bankruptcy).

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Wed, 01/04/2012 - 08:42 | 2032298 bank guy in Brussels
bank guy in Brussels's picture

Shows the strong support for Mario Draghi!

Wed, 01/04/2012 - 08:45 | 2032302 GeneMarchbanks
GeneMarchbanks's picture

You mean Shalom.

Wed, 01/04/2012 - 08:51 | 2032308 Ghordius
Ghordius's picture

LOL you mean Mario Draghi will become EuroBanker of the year?

the banker even banks trust  LOL

Wed, 01/04/2012 - 08:44 | 2032299 Auburn
Auburn's picture

Let's see Graghi save Unicredit - UniCredit, Italy's biggest bank by assets, has had its shares supended after dropping 9.9pc this morning. It revealed it sell new shares at 43pc less than yesterday’s closing price, excluding the value of rights, in a €7.5bn offer to strengthen its capital position.

Wed, 01/04/2012 - 09:09 | 2032335 Belarusian Bull
Belarusian Bull's picture

MillionDollarBonus will buy this. No doubt. They are "highly ranked professionals" after all. What could go wrong?

Wed, 01/04/2012 - 08:48 | 2032300 hugovanderbubble
hugovanderbubble's picture

German and Italian Banks

Sellers in Deutsche Bank  till 15 Euros,

Most exposed to Hungarian Default...

Risk on coming


Wed, 01/04/2012 - 08:46 | 2032303 firstdivision
firstdivision's picture

Inverse profitable carry trade.

If there is this much risk aversion going on, WTF is floating the markets?

Wed, 01/04/2012 - 08:49 | 2032305 Irish66
Irish66's picture

 China's got some huge irregularities in debt...bigger problem is about to emerge

Wed, 01/04/2012 - 08:51 | 2032309 orca
orca's picture

1 Trillion is the new 30BN, with regard to ECB deposits, so all is well in the land of Ponzi.

Wed, 01/04/2012 - 09:03 | 2032327 youngman
youngman's picture

I bet we see the overnight deposit drop by the amount of German Bunds sold today....

Wed, 01/04/2012 - 09:09 | 2032334 Dick Darlington
Dick Darlington's picture

Let's see how the "pea shooter" EFSF manages to raise 3bn in 3yr @ swap+45. Last time it wasn't too hot...

Wed, 01/04/2012 - 09:14 | 2032341 hugovanderbubble
hugovanderbubble's picture

Repeat with me

F R A N C E    I S     N O T     T R I P L E      A


EFSF needs to raise 35% more funds as neither is AAA.


*Its impossible to save all European Banks

1.Nationalizations coming

2.Super Raising Equity Schemes -RECAP (but with huge discounts)

3-Toxic Assets( Specially in Hybrids, + Real Estate Loans and other collateralized products are over 2.58 Trn Euros).....

ISDA- CREDIT EVENT in greece, Hungary,Italy.....


Sell off coming yeah yeah...

French banks gonna be below 0.1x P to book value

Wed, 01/04/2012 - 09:17 | 2032348 Schmuck Raker
Schmuck Raker's picture



Wed, 01/04/2012 - 09:17 | 2032350 The Reich
The Reich's picture

A record at least for a day.

Wed, 01/04/2012 - 09:51 | 2032407 LawsofPhysics
LawsofPhysics's picture

Same as it ever was.  When will wall street banks/brokers and other financial paper-pushing fucknuts be held accountable?   Look like some banks may expect to have their feet held to the fire.  Boring world indeed.

Wed, 01/04/2012 - 10:11 | 2032453 westerman
westerman's picture

If the ECB is going to preform an LTRO every quarter and print somewhere around 5x10^11 euros each time there will be problems. 

1) The dollar is going to rise. This will force Bernanke to create money and lower the dollar. The Ecb will respond by lowering the EUR. It will be a race in who can slash their currency the most.

2) German inflation. ZIRP + bailouts + LTRO is very inflationary. I refuse to believe that years of this can go by unpunished. I am not necessarily talking about hyper inflation. 20% inflation in Germany could really rock the boat.

On a related note, does anyone know what Germany's inflation was during the last half of 2011. I can't find anything on google.

Wed, 01/04/2012 - 11:05 | 2032553 OliverTwist
OliverTwist's picture

look at this link for the inflation rate in Germany



Mon, 01/09/2012 - 01:21 | 2045871 sara29
sara29's picture

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Mon, 01/09/2012 - 09:57 | 2046296 T-Hug
T-Hug's picture

"the ECB will prefund the entire roughly €2-3 trillion capitalization shortfall in European banks" - can anyone tell me how the €2-3 trillion figures were generated?  Thx.

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