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01 April 2020

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly - Bitcoin News

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly - Bitcoin News


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Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly.

On January 13, the New York Federal Reserve gave $60.7 billion to eligible private financial institutions by leveraging U.S.

Now the Fed is pondering giving money directly to hedge funds and private brokers in order to ease the current pressure and lack of liquidity within U.S.

Now the Fed is talking about giving cash directly to eligible hedge funds in order to help ease the demand within U.S.

Officials on Tuesday brought up the idea of hedge funds, smaller banks, and securities brokers borrowing funds from the Fed through the repo clearinghouse by pledging securities like government bonds.

However, critics believe that lending funds directly to securities brokers and hedge funds could lead to a “hedge fund bailout.” After all the rate cuts and massive printing, numerous people believe “the Fed protects gamblers at the expense of the economy.” The chairperson of the Public Banking Institute Ellen Brown noted this week that the “repo market is little known to most people.” But the repo market is: “a $1-trillion-a-day credit machine, in which not just banks but hedge funds and other ‘shadow banks’ borrow to finance their trades,” Brown recently wrote.

What do you think about them giving funds directly to hedge funds, smaller banks, and securities brokers.

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