John Carney‘s posted the “news” that Steve Liesman may have just broken at CNBC…
European officials are working on a detailed plan aimed at shoring up European bank stability, according to an official who spoke with CNBC’s Steve Liesman.
The plan appears to have a lot of moving parts. It would involve money from the European Financial Stability Facility (EFSF), a bailout vehicle created in 2010 to alleviate the sovereign debt crisis in Europe, to capitalize a special purpose vehicle that would be created by the European Investment Bank, a bank owned by the member states of the European Union.
The special purpose vehicle would issue bonds from investors and use the proceeds to purchase sovereign debt of distressed European states.
I don’t know what this special purpose vehicle thing is about, I’m guessing we’ll be hearing more. In the meantime, it’s definitely moved the markets.