The European Central Bank is facing one of the biggest tests in its short history. Its huge injections of liquidity into money markets – starting with €94.8bn ($127.7bn, £64bn) a week ago – were aimed at staving off a financial crisis but raised quizzical eyebrows around the world.The scale of the bank's intervention spooked financial markets, while policymakers fretted that it had set a precedent by helping financial institutions out of a crisis of their own making. "It was an incredibly bold thing to do, but my hunch is that the ECB will come out of this OK," said Julian Callow, an economist at Barclays Capital.
8/17/07
MSNBC: Drama turns spotlight on ECB role - by Ralph Atkins
For the complete report from the Financial Times/MSNBC.com click on this link
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