Run on Federal Reserve Bank????

Unrelated to the FRB per-se, but take a look at failed FDIC insured banks...

http://www.fdic.gov/bank/individual/failed/banklist.html

The number of failures in 2008 has already surpassed the total number for 2007. And what to make of the ominous gap (no failures) in 2005 and 2006, the end of the housing mania.

Of a curious interest to me is the Bentonville AR bank failure in early May 2008... The corporate headquarters of Walmart.

Osorico
 
Trendytrader said""US banks are bankrupt. The latest figures have non-borrowed reserves moving higher again this week.""
Trendy, I thought reserves were good ?!?!?!
Please explain this as I need to learn more.
 
Quote from IanMacQuaide:

Trendytrader said""US banks are bankrupt. The latest figures have non-borrowed reserves moving higher again this week.""
Trendy, I thought reserves were good ?!?!?!
Please explain this as I need to learn more.
More...

Depends how you measure "reserves". The banks have swapped their worthless CDO/MBS and other now worthless assets for FED treasuries. Otherwise they would be mostly upside down assets worth less than loans outstanding.

Remember banking is based on fractional-reserves.
 
Quote from daddyeaux:

reserves on what???

there's no gold or silver to reserve on??

wtf reserves.. there aint no reserves...
More...

Run on the fed? What, somebody run out of ink and paper?
 
Quote from Trendytrader:

I've been looking over the dramatically increasing rate of borrowing from the FED that is taking place through its security lending facility. At the current and increasing rate the FED will hit a limit also in that it simple will not have the treasury securities available to continue to swap CDOs/MBSs and other BS securities from the brokers & bankers.

The Fed's holdings of U.S. Treasury securities fell by a daily average of $39.9 billion to $589.1 billion. That's down from $713.4 billion four weeks ago.


Then what will they do?

http://www.ny.frb.org/index.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0cOlXO2w5JM&refer=home

http://www.reuters.com/article/marketsNews/idUSN0330671820080403
More...


We are now down to $476B. Not much left to swap for crap junk bonds now.

http://www.ny.frb.org/markets/soma/sysopen_accholdings.html
 
You must log in or register to reply here.
Back
Top