Comments on: What if the Fed were a Bank? http://www.ritholtz.com/blog/2009/07/what-if-the-fed-were-a-bank/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 21:56:16 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: FDIC Crisis Mode Pressures Blackstone | ZachStocks http://www.ritholtz.com/blog/2009/07/what-if-the-fed-were-a-bank/comment-page-1/#comment-192348 FDIC Crisis Mode Pressures Blackstone | ZachStocks Sat, 11 Jul 2009 15:56:13 +0000 http://www.ritholtz.com/blog/?p=31437#comment-192348 [...] The regulations are designed with good intent.  As mentioned, the FDIC doesn’t want to see these banks coming back around as failed institutions again.  But at the same time, the FDIC needs the capital and stability of these PE firms in order to help support the banking system and protect consumers.  According to a Forbes article “Beggars Can’t be Choosers” the FDIC is not in a very strong negotiating position considering it needs Private Equity more than PE firms need these particular bank deals. Other Articles of Interest Energy Regulation Weighs on Exchanges Cap and Trade Investments Forbes: Beggars Can’t be Choosers Ritholtz: What if the Fed Were a Bank? [...] [...] The regulations are designed with good intent.  As mentioned, the FDIC doesn’t want to see these banks coming back around as failed institutions again.  But at the same time, the FDIC needs the capital and stability of these PE firms in order to help support the banking system and protect consumers.  According to a Forbes article “Beggars Can’t be Choosers” the FDIC is not in a very strong negotiating position considering it needs Private Equity more than PE firms need these particular bank deals. Other Articles of Interest Energy Regulation Weighs on Exchanges Cap and Trade Investments Forbes: Beggars Can’t be Choosers Ritholtz: What if the Fed Were a Bank? [...]

]]> By: What if the Fed were a Bank? | The Big Picture | Crédit en Ligne http://www.ritholtz.com/blog/2009/07/what-if-the-fed-were-a-bank/comment-page-1/#comment-191784 What if the Fed were a Bank? | The Big Picture | Crédit en Ligne Fri, 10 Jul 2009 09:54:36 +0000 http://www.ritholtz.com/blog/?p=31437#comment-191784 [...] Plus: What if the Fed were a Bank? | The Big Picture Share and [...] [...] Plus: What if the Fed were a Bank? | The Big Picture Share and [...]

]]> By: bigg http://www.ritholtz.com/blog/2009/07/what-if-the-fed-were-a-bank/comment-page-1/#comment-190881 bigg Wed, 08 Jul 2009 00:51:06 +0000 http://www.ritholtz.com/blog/?p=31437#comment-190881 Great analysis. One question, did you run the analysis in full, and then someone said to you "what about the gold?". It seems like you did a great job analyzing the impact of marginal changes in interest rates and MTM valuations of their interest rate-related assets to come up with your answer, and then decided that you shouldn't include the MTM of other assets for what seems to be the same reason. Namely, that MTM volatility on gold would bring scrutiny on the Fed. Wasn't that the whole point of your article, that interest rate volatility should bring scrutiny on the Fed? Given that the MTM on the Fed's gold swamps the both the magnitude of the MTM on the interest rate portfolio, and also provides a buffer to cover a pretty significant shift in long-term rates, shouldn't the conclusion of your article, be that actually, the Fed is pretty solvent if you MTM everything? Great analysis. One question, did you run the analysis in full, and then someone said to you “what about the gold?”. It seems like you did a great job analyzing the impact of marginal changes in interest rates and MTM valuations of their interest rate-related assets to come up with your answer, and then decided that you shouldn’t include the MTM of other assets for what seems to be the same reason. Namely, that MTM volatility on gold would bring scrutiny on the Fed. Wasn’t that the whole point of your article, that interest rate volatility should bring scrutiny on the Fed?

Given that the MTM on the Fed’s gold swamps the both the magnitude of the MTM on the interest rate portfolio, and also provides a buffer to cover a pretty significant shift in long-term rates, shouldn’t the conclusion of your article, be that actually, the Fed is pretty solvent if you MTM everything?

]]> By: Pat G. http://www.ritholtz.com/blog/2009/07/what-if-the-fed-were-a-bank/comment-page-1/#comment-190818 Pat G. Tue, 07 Jul 2009 22:03:45 +0000 http://www.ritholtz.com/blog/?p=31437#comment-190818 For all intense purposes, the FED is owned by the banks therefore it is one. Like Ron Paul says, audit the FED, then eliminate it. P.S. Gold does not trade like any other commodity. There is a huge concentrated short position held by the banks. Wonder why?? For all intense purposes, the FED is owned by the banks therefore it is one. Like Ron Paul says, audit the FED, then eliminate it. P.S. Gold does not trade like any other commodity. There is a huge concentrated short position held by the banks. Wonder why??

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