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Tuesday, December 27, 2011

''Nervous banks place record €411bn with ECB as eurozone woes continue''

read more from the telegraph.......


"The record amount was deposited just a week after the ECB lent 523 eurozone banks a total of €489bn in cheap loans in an attempt to keep credit flowing through the economy and prevent a full-scale credit crunch.
Banks borrowed the money at the ECB's benchmark rate of 1pc, but receive an overnight rate of just 0.25pc, well below what they could earn in wholesale markets"

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