ECB's Garganas Calls on Banks to Tighten Lending for Leveraged Buyouts

(Bloomberg) -- European Central Bank governing
council member Nicholas Garganas called on banks to tighten
lending to buyout firms, saying current pricing of loans may not
reflect risks.

``It is crucial that financial institutions properly price
the risks involved and that in some circumstances limit the
amount they lend,'' Garganas said yesterday in an interview in
his Athens office. Banks ``shouldn't be tempted to relax their
lending criteria to attract new business,'' Garganas said.


Read more at Bloomberg Bonds News