Monthly Archives: January 2011

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NYFed adds more money market funds as repo partners

The Federal Reserve Bank of New York today released the names of 32 more money market funds that have been approved to buy securities from the New York Fed, if and when the Federal Open Market Committee decides to start … Continue reading

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Why did financial institutions believe the AAA ratings?

Yves Smith, author of “Econned” and the Naked Capitalism blog, offered this explanation this morning when she was asked why financial institutions “blithely accepted the AAA ratings or otherwise took the word of the ratings agencies and the demand of the … Continue reading

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Accounting Onion faults FCIC report

Accounting Onion, Tom Selling’s blog, today criticizes the Financial Crisis Inquiry Commission report for failing to hold the accounting profession accountable for its role in the crisis. We are left to conclude that either: (a) the commission couldn’t bring itself … Continue reading

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Naked Capitalism critical of FCIC report

Naked Capitalism, Yves Smith’s blog, today criticizes the Financial Crisis Inquiry Commission report for noting that mortgage underwriting standards were abandoned, allowing many more loans to be made, but failing to ask the key questions: Why were standards abandoned? Who … Continue reading

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Where were the securities?

An American Banker story today, about bank regulators’ current efforts to make sure they and the banks fully understand their exposure to various risks, notes how little regulators knew before the financial crisis. Not long before the subprime mortgage crisis metastasized into a … Continue reading

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Will the next run on repo be in Asia?

RepoWatch Commentary: Reading the following commentaries in the Wall Street Journal, knowing that bankers are developing repurchase markets in many countries, and realizing that our mega-banks are expanding internationally, does it seem that Asian bonds may be the next repo … Continue reading

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FCIC report both vivid and silent on repo

 The Financial Crisis Inquiry Commissions’ long-awaited report describes the run on repo with some vivid detail, but it barely mentions repo in its conclusion, which is all that most people will read. Instead, it focuses on mortgages, credit default swaps … Continue reading