The Wall Street lobby is strong in NYC. Erenow, the Fed’s discount window was designed to help banks during periods of crisis, to meet liquidity needs. Broker dealers and investment banks were left out of this apparatus because their businesses were ardently risk based and they weren’t responsible for the savings of the vast majority of the American people.
Back in the financial crisis, Goldman bought a small bank in order to qualify for Fed funding.
I guess they just want to forgo the formalities and blatantly permit derivative trading assholes access the discount window when their trades go bust.
“Providing these firms with access to the discount window might be worth exploring,” Dudley said in prepared remarks at a financial markets conference in Amelia Island, Florida organized by the Atlanta Fed.
Dudley is owned by Wall Street.
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F*** Dudley
We need to rebuild the structure of our government so that no public officials at all will be owned by mega-corporations, whether banks or whatever.
We need to have a representative democracy that represents the people, not a corporatocracy that represents the owners of Congress members in the “free market” where Congress members and presidents are sold to the highest bidder, who then tells the pres whom to appoint as FOMC head and tells Congress what laws to make.
Is there no stigma to discount window borrowing anymore? I suppose once GS gets access and uses it as a primary funding source, everyone will jump on board. Hell, if they open up the DW to hedgies, I may return to the industry.