Back on December 21, the day when the deus ex 3 year LTRO was completed and €489 billion in gross capital was provided to banks at a 1.00% cost, of which €210 billion was net new incremental capital (pro forma for rolling maturities), the ECB deposit facility usage was €265 billion. As of Friday, the ECB announced deposits have grown to just shy of €500 billion, or a new record of €493 billion (which pays banks just 0.25%). In other words, between the LTRO effective date, and today, an additional €228 billion has been deposited, or more than the entire LTRO! And so Sarkozy's carry promoting dreams are entirely dashed, as instead banks end up paying €1.6 billion a year net just to hold the €210 billion with the ECB. In the meantime, the question becomes whether banks are already preparing for the February 29 3 year LTRO next? Check back when the deposit facility usage hits €700 billion in 2 months as banks stash aside about $1 trillion in capital shortfall cash with the central bank. And rising.