72 Major US Banks on Verge of Insolvency
The Fed boosted lending to banks through TAF as the credit rout continues.
Meanwhile, 72 Major US Banks are on the ropes and technically insolvent.
The central bank increased to $50 billion each from $30 billion the amount intended for auctions of funds planned for March 10 and March 24.
The Fed also said that it will make $100 billion available through weekly 28-day repurchase agreements,
where the central bank lends cash in return for assets such as Treasuries.
The Fed said it will increase the sizes of both the so called Term Auction Facility operations and repurchases.
Repos allow the central bank to inject funds into primary dealers, a group of 20 banks that trade securities directly with the New York Fed.
By contrast, the TAF operations offer funds to deposit taking institutions; the most recent auction included 72 banks.
The Nattering One muses... the names of the banks participating in the TAF are withheld for negative stigma reasons.
Does anyone find the fact that 72 banks participated in this borrowing of last resort, not surprising, but a bit disturbing?
The gravity of the situation is far far worse than the "authorities" are letting on.
As one Naybob of Simian nature, who normally shrugs these sort of events off calmly, as very common, and one off, told me yesterday:
"This may sound over the top, but its not meant to be, and it is my honest opinion.
This is without a doubt, the worst banking crisis in history. Due to the nature of derivatives,
the level and magnitude of how severely the system is f*cked up is beyond anyone's comprehension.
And the guys who are suppossed to be in charge and in the know, Wall Streets best and brightest are a collective pack of clueless numbnuts.
Speaking of which, Paulson wishes the elections were held last November."
Hattip to Bloomberg.
Meanwhile, 72 Major US Banks are on the ropes and technically insolvent.
The central bank increased to $50 billion each from $30 billion the amount intended for auctions of funds planned for March 10 and March 24.
The Fed also said that it will make $100 billion available through weekly 28-day repurchase agreements,
where the central bank lends cash in return for assets such as Treasuries.
The Fed said it will increase the sizes of both the so called Term Auction Facility operations and repurchases.
Repos allow the central bank to inject funds into primary dealers, a group of 20 banks that trade securities directly with the New York Fed.
By contrast, the TAF operations offer funds to deposit taking institutions; the most recent auction included 72 banks.
The Nattering One muses... the names of the banks participating in the TAF are withheld for negative stigma reasons.
Does anyone find the fact that 72 banks participated in this borrowing of last resort, not surprising, but a bit disturbing?
The gravity of the situation is far far worse than the "authorities" are letting on.
As one Naybob of Simian nature, who normally shrugs these sort of events off calmly, as very common, and one off, told me yesterday:
"This may sound over the top, but its not meant to be, and it is my honest opinion.
This is without a doubt, the worst banking crisis in history. Due to the nature of derivatives,
the level and magnitude of how severely the system is f*cked up is beyond anyone's comprehension.
And the guys who are suppossed to be in charge and in the know, Wall Streets best and brightest are a collective pack of clueless numbnuts.
Speaking of which, Paulson wishes the elections were held last November."
Hattip to Bloomberg.
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