Wall Street profits from trades with Fed
Financial Times / Henny Sender
02-Aug-2009 (3 comments)

Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say....The resulting profits represent a relatively hidden form of support for banks, and Wall Street has geared up to take advantage.Barclays, for example, e-mails clients with news on the Fed’s balance sheet, detailing the share of the market in particular securities held by the Fed. “You can make big money trading with the government,” said an executive at one leading investment management firm. “The government is a huge buyer and seller and Wall Street has all the pricing power.”A former official of the US Treasury and the Fed said the situation had reached the point that “everyone games them. Their transparency hurts them. Everyone picks their pocket.”

>>>

Share/Save/Bookmark

 
oktaby

The long running scam culminating is 2008 melt down

by oktaby on

Was the end of the last ponze scheme and the beginning of a new one, only with fewer players and beneficiaries. What we do not yet know is whether these sequential clusters will have depleted the ability to recover from the extreme plunder that started with Reagan. //www.theatlantic.com/doc/200905/imf-advice