EU Banks Hesitant to Return ECB Funds

Euro zone end-of-year financial market tensions have been highlighted by the ECB’s failure to reabsorb funds it has spent on buying govt bonds to combat the region’s debt crisis. The euro’s monetary guardian had planned on Tuesday to absorb €73.5 bln ($96.5 bln) from the euro zone financial system – equivalent to the amount it has spent on government bonds since May. But euro zone banks offered the ECB just over €60 billion. – FT