ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion

Filed under: Financial Crisis, Currency

European Central Bank President Jean-Claude Trichet, who earlier relaxed lending rules for one country, diluted the lending rules for a second time Tuesday by announcing that the ECB will continue to indefinitely accept Greek bonds as collateral despite their downgrade by ratings agencies, Bloomberg News reported.



The move came after rumors pervaded the stock, bond, and currency markets Tuesday that Spain may need a European Union and/or International Monetary Fund aid package to stabilize its financial situation. Spain Tuesday rejected the assertion. The euro tumbled Tuesday, nonetheless, weakening about 2 cents versus the dollar to $1.3014 in afternoon trading.

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ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion originally appeared on BloggingStocks on Tue, 04 May 2010 17:30:00 EST. Please see our terms for use of feeds.

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