test 3 WSJ summary

test 3 WSJ summary - liquidate excess reserves all at lower...

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4/1/2011 Fed released documents by showing heavy discount window borrowing by foreign banks, regional US banks. ..thought it would be kept secret At the peak of discount window lending, 2 european banks were the biggest borrowers One of the largest loans went to Wachovia Exposed that Fed was lending to failing banks. ..which they shouldnt be doing The fed is able to pick winners and losers basically Is it a problem they were lending to German banks? is that their job? April 11 Obama set aside 30 bill for small business lending Banks could borrow at rate of 1%-5%. ..the larger the loan the lower the rate given to borrow Only 7% of banks chose to participate b/c of heavy initial and continuing paperwork Deadline was extended for the program by the Treasury Dept. Banks could just as easily borrow in the fed funds market, from the discount window, or
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Unformatted text preview: liquidate excess reserves all at lower interest rates and with less paperwork March 30 FDIC has paid out nearly 9 bill to cover losses on loans and other assets FDIC has agreed to assume more losses on $160 billion of assets The BIF has a negative sum that is decreasing March 18 Fed Reserve expected to free some biggest banks from strict oversight Fed will allow FIs that have passed new stress tests to run their businesses independent of crisis-era restrictions from 2008 Will permit banks to raise dividends and buy back shares 6 of the largest banks paid dividends again of 8.7 million 3 more said they may raise dividends later this year GS allowed to pay down debt...
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test 3 WSJ summary - liquidate excess reserves all at lower...

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