CBs Archive

Monetary ops

The larger point is that ANY assets banks are allowed to hold already have to be on the regulators approved list, and banks in any case can fund all their (legal) assets with with govt insured deposits. So why should another arm of government, the Fed, not always provide funding for the ...Read More

Bloomberg: European banks may write down $81 billion more

While problems in the US financial sector pose risks for the real economy, systemic risk to the payments system is not an issue. The US banking system has credible deposit insurance, so it is unlikely there would be any kind of run on the banks by depositors, and operationally the Fed can ...Read More