Trichet Says ECB Can't Intervene in Bank Solvency Issues

European Central Bank President Jean-Claude Trichet spoke yesterday in Evian, France, about the bank's ability to respond to the financial crisis and the role of individual governments. The ECB doesn't have the same powers as the U.S. Federal Reserve, which granted loans to avert the collapse of Bear Stearns Cos and American International Group. Instead, the ECB has been flooding the financial system with cash to lubricate lending between commercial banks in the euro area. (This is a translated excerpt. Source: Bloomberg)

Bloomberg | October 8, 2008

Tags:. .american. .group. .powers. .cant. .same