matroskin Posted August 6, 2009 Share Posted August 6, 2009 If a bank lends money to itself, it pays no interest because it is paying the money to itself. Why then don't they lend money to themselves and buy Treasuries for a guaranteed profit with no risk. Or is this what they are already doing on the sly? To prevent or delay market price discovery / "mark-to-market". That's why US banks are bidding top dollar on own foreclosures and prop up the market price albeit at lower volumes. Quote Link to comment Share on other sites More sharing options...
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