Earlier today, we presented a Top-Down [5]analysis via SocGen of Wednesday's ECB massive extended Discount Window operation, also known as the second 3 Year LTRO operation (whereby we once again remember that unlike the Fed, the ECB is fully unaware of the adverse consequences of the stigma associated with borrowing last ditch liquidity, but when all else has failed, one has to do what one has to do). And while we will conclude our LTRO preview series with LTRO 2 103: Bottoms-Up, as a courtesy fo those who are fine-tuning their LTRO stigma trade (long banks that will not participate in the upcoming LTRO, short banks that will) SocGen's prediction of which banks will take down LTRO 2 funding, and how much. Draghi said there is no stigma trade. We proved him wrong [6], at least in the interim. LTRO 2 will finally decide who is right and who is wrong.
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