Fed Provides Back Door Support to Banks
Posted in Main Blog (All Posts) on August 3rd, 2009 4:40 am by HL
Fed Provides Back Door Support to Banks
“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,” the Financial Times reports.
“The resulting profits represent a relatively hidden form of support for banks, and Wall Street has geared up to take advantage.”
Said on former Treasury official: “Everyone games them. Their transparency hurts them. Everyone picks their pocket.”