People are asking what does it mean when the Federal Reserve opens its discount window to Wall Street investment firms. According to CNBC and the WJS the brokerage firm Lehman repackaged $2.8 bn of risky buyout loans into a new security called Freedom. Some of these securities, allegedly the size of the loan was not material, were used as collateral for a short term loan from the Fed. The balance sheet of the Fed is taking on risk that would not have been possible just a few month ago. Hank is hiding behind Ben's cloak. One can't help but wonder how long this can go on?
Friday, April 11, 2008
Is Hank hiding behind Ben?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment