ECB needs to stop subsidizing banks, Holzmann says

The European Central Bank needs to stop subsidizing commercial banks and should cut interest payments on the piles of cash lenders got from the central bank on the cheap, Austrian central bank Governor Robert Holzmann said. Commercial banks are sitting on 3.2 trillion euros worth of excess liquidity, parking this at the ECB at a 4% rate, pushing the ECB and many of the euro zone's national central banks deep into the red.