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Post by jeffolie on Sept 10, 2007 10:52:01 GMT -6
For Bankers, Yet Another Credit Migraine Citigroup leads the banks at risk as demand dries up for a $400 billion market for off-balance-sheet investments 'Freaked Out' Fed Moody's, for example, dropped its ratings on some longer-term notes issued by London-based Cheyne Finance from prime A3 to Caa2, deep within the well of junk. That really freaked out the folks at the Fed, causing them to cut the discount rate and dramatically to liberalize discount window borrowing terms." www.businessweek.com/bwdaily/dnflash/content/sep2007/db2007099_684684.htm?campaign_id=yhoo
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Post by unlawflcombatnt on Sept 12, 2007 2:23:09 GMT -6
The article shows what the Fed's real priorities are--bailing out banks and financial institutions, to help them avoid putting off-balance-sheet SIVs back on their balance sheets, and take the resulting losses.
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