ECB trying to democratize the market for bad bank debt
The ECB is working on a website that will list and sell hundreds of billions of euros of bad bank loans, according to a Reuters report.
The ECB doesn't want to be forced to sell to just distressed debt investors so it's hoping that by listing them, it can get better prices.
"The idea is to open up the market to buyers of smaller portfolios, with an Amazon or eBay-style marketplace, where you can browse," said the ECB's Edward O'Brien.
The headline here is hokey but enlarging a marketplace is always a good idea. Knowing the ECB, the execution is going to be the hard part.
