Quote:
Originally Posted by Discuss Thrower
Predictable response by a predictable poster.
01/30/2020 | 11:37am EDT
By Michael S. Derby
The Federal Reserve Bank of New York added $82.58 billion in new liquidity to financial markets Thursday, but the overall outstanding amount of interventions held roughly steady.
The Fed's money entered eligible banks' coffers in two ways. One was an overnight repurchase-agreement operation, or repo, that totaled $48.78 billion, the other was via a $33.80 billion 14-day repo.
In both cases so-called primary dealers took less than the Fed offered. Due to the expiration of past interventions, overall temporary central-bank liquidity ticked down $1.5 billion to $173.7 billion.
Fed repo interventions take in Treasurys, agency and mortgage bonds from the dealers, in what is effectively a short-term loan of central-bank cash, collateralized by the bonds. Primary dealers are limited in the amount of liquidity they can
The too-big-to-fail banks were in trouble months ago, but they get the benefit of direct access to bailout money thanks to FOMC owing to the fact that they've been deemed... too big to fail.
First Bank of Hooterville though? Nope. They get shut down and their assets get sucked up.
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I think your name should be changed to Charon, personally.