So much for that "normalization" in European liquidity. After on Friday we noted that borrowings under the Marginal Lending Facility dropped by a whopping €12.7 billion to €2.2 billion, the latest ECB update shows that MLF borrowings have once again surged to a new post launch record of €17.1 billion. And while the original surge was first explained by a "fat finger" and later by the need of failing Irish banks to pledge collateral at a punitive 1.75% rate in exchange for overnight access, this time around the same explanation will be more difficult to fly considering that Anglo Irish and INBS were said to have achieved some degree of normalization over the past week. Today's action puts the whole "blame Ireland" explanation in question, and asks who else is in dire need of liquidity. We can't wait to hear what the ECB floats as justification.
So Much For That European Liquidity Normalization: Marginal Lending Facility Borrowings Surge To Fresh Post Launch €17.1 Billion Record
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