Tuesday, February 19, 2008

US Fed buys the garbage collateral nobody else wants

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 (571 views)
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One thought on “US Fed buys the garbage collateral nobody else wants

  • waitingfor hpc says:

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

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