Tuesday, Feb 19, 2008

US Fed buys the garbage collateral nobody else wants

The FT: US banks borrow $50bn via new Fed facility

"The TAF ... allows the banks to borrow money against all sort of dodgy collateral,” says Christopher Wood, analyst at CLSA. “The banks are increasingly giving the Fed the garbage collateral nobody else wants to take ... [this] suggests a perilous condition for America’s banking system.”

Posted by sold 2 rent 1 @ 06:51 PM (233 views) Add Comment

1 Comment

1. waitingfor hpc said...

so does this let the banks off scot free? seems this will solve their problems and pass the bad debt to the FED.

Tuesday, February 19, 2008 11:06PM Report Comment
 

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