European Central Bank minutes leaked in first security breach

Secret minutes of the European Central Bank’s policy deliberations have been leaked for the first time in its history, with the security breach shedding light on the often fraught relationship between policymakers during the euro zone crisis.

Quotes from the minutes appeared on the New York Times website yesterday in a story referring to the emergency assistance the ECB provided to Cyprus Popular Bank, now Laiki Bank, in 2012 and 2013.

The minutes, which should remain secret for 30 years, are supposed to be seen only by the six top ECB officials, 18 national central bank governors, those who accompany them to the council meetings, and a select few others.

The security breach is the first of its kind since the central bank was founded in 1998. The ECB is yet to decide whether to investigate where the leak came from.

The New York Times reveals Jens Weidmann, Germany's Bundesbank president, challenged Panicos Demetriades, the governor of Cyprus's central bank, on the value of Cyprus Popular Bank's collateral pledged in exchange for the €9 billion in loans it received. – Copyright The Financial Times Limited 2014