The ECB did not at this point have data on the subprime exposure of Europe’s banks. But the stress in the interbank lending market was all too obvious. In response Jean-Claude Trichet and his colleagues opened the liquidity tap, offering funds at attractive rates in unlimited quantities. By the end of the day on August 9, Europe’s banks had taken 94.8 billion euros, and they took another 50 billion on August 10.
