Professor Gregory Connor:

That is correct. The liability guarantee was a fix-up. It was a patch-up to allow funding into the banking sector in the absence of solvency. That is the first of my three caveats regarding the liability guarantee. It was used as a fix-up. The ECB said it was not liquidity funding but that it had a Government guarantee that the funding would be repaid. In my opinion they were using the liability guarantee indirectly.