European Central Bank Executive Board member Benoit Coeure said the region’s banks may not need another round of the cheap long-term loans previously provided to fight the euro-area debt crisis and a recession. Standing credit facilities may be enough to ensure an appropriate level of liquidity, Coeure said. If not, the ECB would act, added Coeure, who is responsible for money markets at the ECB. “Tail risks are much more limited today than six months ago. So to that extent, we’re more confident in the recovery.” Coeure’s view shows a key ECB director expects financial markets to operate without the long-term refinancing operations that warded off a credit crunch two years ago. At the same time, he stressed that the central bank is still guaranteeing lenders as much short-term cash as they need until at least July 2015.
Stocks dipped modestly through late morning from yesterday's new highs in the wake of a big drop in shares of retailer Best Buy (NYSE: BBY), which plunged 27 percent to $27.43 after the No. 1 consumer electronics chain reported weak holiday sales and forecast a bigger-than-expected decline in quarterly operating margins.
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