via The Telegraph:
Germany’s central bank may need a bailout to cover losses on the debt it hoovered up as part of the European Central Bank’s (ECB) massive bond-buying programme, the country’s federal auditor has warned.
The Bundesrechnungshof said losses faced by the Bundesbank on more than €650bn (£570bn) of bond purchases were “substantial” and “could necessitate a recapitalisation with budgetary funds”.
The critical report of the ECB’s so-called public sector purchase programme (PSPP) – akin to quantitative easing in the UK and US – throws future bond-buying sprees to prop up the single currency bloc in doubt.
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