When Mario Draghi (now ECB President), had oversight of the Italian bank system as Bank of Italy Governor, the Italian bank Monte dei Paschi di Siena (Italy's third largest bank) hid information on the derivatives transactions between 2006 and 2009.
This information is just now out, and shares of the bank have plunged 22% in a few days. Mario Draghi ought to be under fire, but he says it's a "Matter for the Italian Authorities".
The Mish translation is "It's a Matter for the Italian Authorities, to Sweep Under the Rug".
ECB Denies it is Blackmailing GreeceYesterday, Mario Draghi Hit Back at QE Hawks and denied the ECB was blackmailing Greece. Critics of QE, such as Bundesbank president Jens Weidmann and the head of the Dutch central bank, Klaas Knot, argue the policy, which helps lower the cost of borrowing for member states, will allow countries such as France and Italy to shirk unpopular reforms.
Update: Mario Draghi: The Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate, if necessary
NAPLES, Italy — The European Central Bank left interest rates unchanged on Thursday, shifting focus to an asset-buying plan with which it hopes to revive the flagging eurozone economy and see off the spectre of deflation.
Get ready for record low interest rates in Europe as ECB ready to push boundaries of crisis role
A Reuters survey of 73 analysts showed a 60-percent chance the ECB will cut rates by 25 basis points to a record low of 1.0 percent -- a floor it previously reached during the financial crisis in 2009. It cut rates by a similar amount in November.