European Central Mafia

Via Ryan Avent, a little color on the background of the Cyprus “deal”:

He went back up to brief the president and Mr. Anastasiades rejected the deal, threatening to leave. At that point, around 1 a.m. a small group—including Ms. Lagarde, Mr. Rehn, Mr. Sarris, Mr. Schäuble, France’s Pierre Moscovici, Mr. Asmussen and Mr. Dijsselbloem broke off into a separate room.

I have obtained an exclusive video showing a brief clip of Asmussen’s conversation with Schäuble:

It was then that Mr. Asmussen told Mr. Anastasiades that without a deal, Cyprus’s two big banks faced insolvency, since they would have no prospect of European funds to repair their battered capital buffers, said people who were present.

In that case, the ECB would no longer be willing to fund the banks with central-bank emergency liquidity, Mr. Asmussen said, according to these people. The implication: The island’s biggest banks might be unable to reopen after Monday’s bank holiday.

Don’t you wish the U.S. were more like Europe?

Give it time.

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