European Central Banks are trying to unload the PIIGS sovereign debt they picked up during the last bout of crisis:
At the peak of the debt crisis in Europe, the European Central Bank committed a break with tradition that many at the time considered to be a cardinal sin. The bank began buying up massive amounts of sovereign bonds from euro-zone countries that faced the risk of insolvency and which were having trouble selling their bonds on the public market.
Now the ECB wants to stop the practice. Sources with direct knowledge of the developments have told SPIEGEL that the central bank, in internal discussions, is pressuring governments of the 17 euro-zone countries to transfer the bonds purchased to the European Union’s euro rescue fund, the European Financial Stability Facility (EFSF).
Probably not a good sign that the lender of last resort now wants out!
Hat tip correspondent and reader Dr. Evil for passing this link along!