Strawman-of-the-night: G7 OFFICIAL SAYS EUROPEAN GOVS WEIGHING TALF-LIKE PGM: CNBC
TALF was the Fed's backstopped loans for buying ABS (in order to improve the liquidity of the ABS markets which were apparently pricing in a fire-sale as opposed to a fundamentally terrible environment).
The ECB equivalent, we assume, will be ECB funded non-recourse loans provided to third parties enabling the purchase of Sovereign debt (which acts as collateral). If these guys can't agree on Euro-bonds, debt buybacks, or an EFSF extension, agreeing to an ECB taking all the risk and missing out on any upside seems highly intractable - but crazier things have happened.
More as we get it...