So says German paper Handelsblatt in an article published today and just out on Bloomberg
BOS have declined to comment
No further detail at present
Update:
Handelsblatt claim that the BOS repeatedly stretched ECB rules for what securities that banks can use as collateral for ECB funds
- some securities are accepted that don't meet the ECB's criteria
- other bonds meet criteria but are given lower discount then ECB rules demand
- Banco de Sabadell is one example of a bank that had securities accepted that shouldn't have been
Still no response from the BOS but this needs some answer/ explanation
