Bloomberg News

Germany’s Schaeuble Says ECB Won’t Become Lender of Last Resort

November 18, 2011

Nov. 18 (Bloomberg) -- German Finance Minister Wolfgang Schaeuble rejected calls to make the European Central Bank a lender of last resort.

While such a move may have the effect of temporarily easing financial-market turmoil, it would damage the stability of the euro in the longer term, he said.

“If we did that, the consequence would be that for some months we’d have a certain quiet,” he said. In the longer term, “the financial markets would assume that the euro isn’t a stable currency, whether financial markets would then think that it’s not that bad, I doubt it. That’s why i don’t think it’s the right solution.”

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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