If all market participants attempt simultaneously to liquidate positions, markets which were previously reasonably liquid will also become illiquid, and realisable values may, for all banks, be significantly lower than the published accounts suggested. 15. Volatility in financial statements is also a concern for the regulator.
The announcement was followed by a letter, signed by then ECB President Jean-Claude Trichet, addressed to parties interested in building and participating in a data warehouse for asset-backed securities. In this letter, the Eurosystem recognised the need for a loan-level data warehouse and expressed its intention of becoming a client of this data warehouse.