Trichet rejects ECB role as lender of last resort

Article reports that Jean-Claude Trichet dashed hopes that the European Central Bank would ride to the rescue of the eurozone by pledging to backstop crisis-hit member states.

In one of his last appearances as ECB President, Mr Trichet rejected the idea on the 4 October 2011 of the ECB acting as lender of last resort to governments. It was up to eurozone political leaders to restore investor confidence in Europe’s monetary union, he told the European Parliament.

ESO: Background information: ECB prepares for change as Trichet finale nears http://www.europeansources.info/record/ecb-prepares-for-change-as-trichet-finale-nears/

ESO: Background information: ECB poised to act to reassure markets http://www.europeansources.info/record/ecb-poised-to-act-to-reassure-markets/

ECB: Speech, 4.10.11: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament: Introductory statement by Jean-Claude Trichet, President of the ECB Brussels, 4 October 2011 http://www.ecb.int/press/key/date/2011/html/sp111004.en.html

European Parliament: Press Release, 4.10.11: Parting words from Jean-Claude Trichet http://www.europarl.europa.eu/en/pressroom/content/20111003IPR28086/html/Parting-words-from-Jean-Claude-Trichet

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