Monday, May 26, 2008

Money From Heaven

The Federal Reserve handed out another $46 billion to U.S. investment banks last Thursday.
The Fed conducted its ninth TSLF Thursday, exchanging Treasury notes for unwanted mortgage- and asset-backed securities. While it may be a “good” sign that struggling investment houses didn’t borrow ALL of the $75 billion the Fed made available, it’s still worth noting that these big brokerages have dumped around $160 billion on the Fed since these weekly auctions began in March.

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