Draghi shrugs off direct financing of large companies against criticism of blurring the line of monetary policy
The ECB is buying the bonds of the largest companies in Europe. The problem is that this looks like monetary financing of mega-cap companies while leaving small businesses unaided.
In response, he said that by using ECB money to buy corporate bonds, it frees up banks balance sheets so they are able to lend to small firms.
That's some kind of trickle-down QE logic that makes them awfully exposed in the court of public opinion. It's like giving the wealthy ultra-cheap mortgages and saying that frees up banks to lend to the middle class.
