So much for Steve Liesman's European EFSF rumor that pushed equity markets higher yesterday into the close, as both German finance minister Wolfgang Schaeuble and Merkel spokesman Steffen Seibert are on the wires this morning saying 'no deal' to an expanded, Enron-like, CDO squared SIV bailout. And in case they weren't stating the case of Germany's opposition clearly enough, the coalition party FDP made it a triple kibosh.
You want more proof that Liesman was overreaching in a blatant attempt to goose markets on unsubstantiated rumors? Bloomberg reports this moring that the EIB, European Investment Bank, not only has not been approached regarding EFSF expansion, but that it would reject the idea outright if proposed.
Back to the drawing board for Euro bailouts.
BERLIN—The German government Tuesday rejected the idea that the European Financial Stability Fund would be expanded beyond what the 17 euro-zone governments agreed upon in July.
Changes to the bailout facility "should look exactly as the plan set out on July 21," said Steffen Seibert, a spokesman for German Chancellor Angela Merkel, adding that the German government doesn't approve of further changes.
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Wolfgang Schaeuble
Headlines from Bloomberg:
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EIB Says Has Not Been Approached Over EFSF Bailouts Plan - Bloomberg
“There have been media reports about a potential involvement of the EIB in a special purpose vehicle in connection with the EFSF, for the purpose of bailouts,” the EIB said today in a statement. “The EIB has not been approached and has no plans to be involved in this. The EIB will continue to focus on its mission which is financing viable investment projects.”
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