Bank & Treasury Management - BSF222
Agustin Mackinlay

a.mackinlay@euruni.edu

Session 3 - February 14, 2012
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SHOW ME THE MONEY!

Liquidity facilities with central Banks

Banks and the ECB’s Long-term refinancing operations (LTRO)

Banks and central bank liquidity swaps

 . Federal Reserve

 . European Central Bank

. John Taylor: “Expectations, Open Market Operations, and Changes in the Federal Funds Rate,” Review, Federal Reserve Bank of St. Louis, Vol. 83, No. 4, July-August 2001, pp 33-48 [ONLY FIGURE 7!]

. Chart: bank reserves

. S&P Banks ETF: chart; (b) KBW Bank Index: chart

. Crédit Agricole: ACA.PA €3.98 [see]

. Erste Bank: EBS.VI €10.64 [see]

. Goldman Sachs: GS €87.89 [see] [QUESTION: Why consider an American bank? Are we not talking about the ECB’s liquidity operations?]

. Citigroup: C €23.51 [see]

WHAT MESSAGE IS THE MARKET CONVEYING TO Mr. DRAGHI? SHOW ME THE MONEY! [VIDEO]

. US Federal Reserve: Central Bank Liquidity Swaps

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