The Fed's Collateral Squeeze

Collateral squeeze, the Fed DID it.

Total collateral pledged by borrowing depository institutions exceeded $1 trillion as of May 27, more than twice the amount of credit outstanding.

The Federal Reserve announced updates to collateral valuations in early April and implemented the updates at the end of April. These changes reduced the lendable value of collateral in aggregate by about 10 percent.
Most depository institutions that borrow from the Federal Reserve maintain collateral well in excess of their current borrowing levels

Comments

[fireball:]

when the fed scam plays out then won't the collateral be their property. seems to remind of warnings about the central bankers from our founders.

Jun 22 01:05 PM