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.