Fed bends rules to help two big banks

uscitizen

uscitizen

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Fed bends rules to help two big banks
If the Federal Reserve is waiving a fundamental principle in banking regulation, the credit crunch must still be sapping the strength of America's biggest banks. Fortune's Peter Eavis documents an unusual Fed move.
FORTUNE Magazine
By Peter Eavis, Fortune writer
August 24 2007: 5:09 PM EDT

NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site.

The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks can do with their brokerage affiliates. The exemption, which is temporary, means, for example, that Citigroup's Citibank entity can substantially increase funding to Citigroup Global Markets, its brokerage subsidiary. Citigroup and Bank of America requested the exemptions, according to the letters, to provide liquidity to those holding mortgage loans, mortgage-backed securities, and other securities.

http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?cnn=yes
 
uscitizen said:
Fed bends rules to help two big banks
If the Federal Reserve is waiving a fundamental principle in banking regulation, the credit crunch must still be sapping the strength of America's biggest banks. Fortune's Peter Eavis documents an unusual Fed move.
FORTUNE Magazine
By Peter Eavis, Fortune writer
August 24 2007: 5:09 PM EDT

NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site.

The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks can do with their brokerage affiliates. The exemption, which is temporary, means, for example, that Citigroup's Citibank entity can substantially increase funding to Citigroup Global Markets, its brokerage subsidiary. Citigroup and Bank of America requested the exemptions, according to the letters, to provide liquidity to those holding mortgage loans, mortgage-backed securities, and other securities.

http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?cnn=yes
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Just more evidence of a major liquidity problem. I cant' say I blame the FED given the impact a cash crisis would have on the economy as a whole, but these fuckers shouldn't be bailed out for acting like a bunch of prisoners out on parole.
 
Dungheap said:
Just more evidence of a major liquidity problem. I cant' say I blame the FED given the impact a cash crisis would have on the economy as a whole, but these fuckers shouldn't be bailed out for acting like a bunch of prisoners out on parole.
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And it is not done yet...Just starting....
 
uscitizen said:
And it is not done yet...Just starting....
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Ufortunately all too true. and jobs are already starting to disappear which will bring about a new round of forclosures, and the banks will have no where to go, or customers for them, and thus will require a new round of Bank bailouts, which will cause--------. I'm sorry, But I have seen it coming for a long long time.
 
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whatcha talking about, the economy is great. Apple is waay up!

It is of no consequence that we have to let our 2 largest banks bend the rules a bit...

:D

This just proves that we did the right thing deregulating them so they could deal in securities and such.
 
The banks want to be allowed to subsidize their american business sector with profits from overseas operations, to hide how fucked we really are.
 
uscitizen said:
whatcha talking about, the economy is great. Apple is waay up!

It is of no consequence that we have to let our 2 largest banks bend the rules a bit...

:D

This just proves that we did the right thing deregulating them so they could deal in securities and such.
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yet again he was so right
 
evince said:
yet again he was so right
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08/2006 to 10/2007
RIP
grave2.JPG
 
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