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To: ChanceIs who wrote (123360)	5/15/2008 8:23:59 PM
From: Smiling Bob	Respond to of 306849

That's in Europe Ben assured us he only takes AAA. His word is gold Besides, US banks operate under much higher standards They'd never do anything like this :) ----- He was speaking amid signs of some banks creating low-rated assets specifically so they can be traded for treasuries at the European Central Bank.

To: ChanceIs who wrote (123360)	5/15/2008 8:26:21 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>>Yves Mersch, a governing council member, said the ECB was now “looking very hard at whether there is not a specific deterioration of collateral” which the central bank is accepting in return for funds. He was speaking amid signs of some banks creating low-rated assets specifically so they can be traded for treasuries at the European Central Bank<< At least the ECB acknowledges this is going on, which is more than we can say for the Fed (where master theives such as Jamie Dimon continue committing the Crime of the Century right under Bernanke's Ivory Tower nose, and with his "non-recourse" blessing no less)! >>“There is moral hazard . . . and we are not in the business of taking over the market,” Mr Mersch said. “That means there must be an exit strategy.”<< The exit strategy is to quit when the Fed is either bankrupted or outlawed or responsible adults take over the reins, whichever comes first.