Posted on 05/08/2016 6:45:20 PM PDT by Lorianne
The U.S. Federal Reserve may need more powers to provide emergency funding to securities firms in times of extreme stress in order to deal with a liquidity crunch, New York Federal Reserve President William Dudley said on Sunday.
"Providing these firms with access to the discount window might be worth exploring," Dudley said in prepared remarks at a financial markets conference in Amelia Island, Florida organized by the Atlanta Fed.
The discount window is a credit facility through which banks borrow directly from the U.S. central bank in order to cope with liquidity shortages.
The Fed currently has limited ability to provide funding to securities firms in such situations, with the discount window only available to depository institutions.
But the transformation of securities firms since the financial crisis, Dudley said, with the major ones now part of bank holding companies and subject to capital and liquidity stress tests, meant the environment has now changed.
(Excerpt) Read more at reuters.com ...
Too big to fail.
Financial market anxieties are clearly increasing. Is the bubble getting to dangerously high levels? Inquiring minds do wonder ....
worse then that....
PLANNED to fail....
That’s a great idea give them more power. Aren’t they mis-managing the entire economy now?
The economy has been artificially propped up.
It can’t be propped up forever.
It’s planned for it to fall apart just as or after Obama leaves office.
I like the line : It’s not Federal and it doesn’t have any reserves.
See?
They KNOW what’s going to happen.
They know it.
They probably WANT it.
It’s “reserves” are “us”. We are slaves to this abomination at every turn. Hang ‘em all and the ones we can’t hang, shoot, twice.
They are hooking up siphons to our bank and brokerage accounts as we speak.
This is where the 0.1% are heading.
There, and New Zealand, etc.
Stopped reading at “Fed needs more powers...”
No. They don’t.
The US creditors will be standing in line to take Trump up on his offer to pay pennies on the dollar.
It will be better than nothing.
"You get a bailout! You get a bailout! EVERYBODY GETS A BAILOUT!!"
Hmmm, wonder why the solution from the leftscum is ALWAYS to give the government or the corrupt organizations they support more power?
/SARC
I believe you are wrong.
The perto-dollar is done; it is months away. The U.S. Dollar will be a thing of the past in a short few years. The reset, the real one, is coming. Hold long your positions to levy in the new market and prep like there is no tomorrow ( you have PM and good stores, right?).
That's why they're buying ranches with private airstrips on the South Island of New Zealand.
Too big to fail means too big to continue. Break ‘em up until they are no longer a threat. This means they no longer share executive boards, or proxy executives from the same corporations, they may even have “significant” stock ownership exclusivity. That is, if someone owns a lot of one company, they cannot own a lot of the other company.
And post breakup collusion is severely prosecuted.
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