Yesterday, Germany's Central Bank Announced Gigantic Loss. TODAY the European Central Bank is having "Settlement Glitches"
Yesterday, February 26, the Bundesbank in Germany, their Central Bank, announced they had lost about $20 Billion from Interest payouts they had to make while not receiving money back from Bonds they'd invested in. Today, the European Central Bank announced they have "communications glitches" in their $1.9 TRILLION per day system.
Germany’s central bank plunged to a record €19.2bn (£15.9bn) loss last year in the latest setback for Europe’s largest economy.
A bond-buying spree prompted the Bundesbank to report its largest net loss in history, with officials warning that financial strain would remain throughout 2025.
Sabine Mauderer, the Bundesbank’s first deputy governor, said: “Overall, we expect to report losses and carry them forward for some time.”
The losses stem from the central bank holding too many government bonds with low yields, which were unable to offset a recent rise in borrowing costs that led to the Bundesbank paying out more in interest to banks.
That loss was reported Two days ago HERE, and again yesterday Here and Here.
Here we are, two days later, and all of a sudden, the European Central Bank can't "settle" continent-wide:
The European Central Bank reported a "communications glitch" on Thursday in its securities settlement system, which handles $1.9 trillion a day in transactions, leaving traders and bank risk managers scrambling to figure out the potential impact.
The ECB said the outage had affected communication channels across its pan-European TARGET 2 Securities, or T2S, platform, but did not offer more specifics. Trading sources said communications had been disrupted and the status of trades since the outage was reported remained unclear.
According to the ECB's website, any issues with the T2S system in the past couple of years have typically been resolved relatively quickly. Thursday's outage was reported at 0730 GMT and was still continuing by 1350 GMT.
The T2S platform is used to reconcile and settle trades in cash and securities across the Eurosystem, which includes the ECB and central banks of the countries that use the euro.
Here's the "rub:" As reported above, Settlement (payment) on trades in the European Central Bank take two working days, which might mean disruption may not show up continent-wide until early next week.
So here we are, on a Thursday with a "glitch" in the European settlement (payment) system. Friday is one working day . . . . then there's a weekend . . . and Monday will be the second working day . . . . if the banks open.
Is today's "glitch" an actual "communications glitch", or do the banks not have the money?
Take some cash out of the bank today just in case. Have it at home so you can buy food, gasoline, etc. on which to survive. I'm talking SURVIVAL, not paying bills. If everything returns to normal on Tuesday, you can put the cash back. But it is better to HAVE it and not need it, than to need it, and not have it.
If Europe banks collapse, it will sweep over to America within hours.
https://halturnerradioshow.com/index.php/news-selections/world-news/yesterday-germanys-central-bank-announced-gigantic-loss-today-the-european-central-bank-is-having-settlement-glitches