The Latest Luck of Bill Gross

Apparently Bill Gross's luck didn't stop with his latest Pimco missive wherein he said the Fed needing to begin buying commercial paper. Recall: That came out only an hour before the Fed announced just such a program. Now, according to a release on the NY Fed site, his firm is in discussions to be "in support of" said newly-launched commercial paper program. Gosh, Bill is the luckiest guy in the world.

Statement Regarding Asset Management Services in Support of CPFF
October 8, 2008

The Federal Reserve Bank of New York announced today that it is in discussions with PIMCO regarding asset management services in support of the Commercial Paper Funding Facility (CPFF), a facility that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets.

Somewhat more seriously, Bill is a smart guy, and Pimco is a highly capable firm, but giving close access to credit programs so quickly to such a large player in those markets would be like giving control over Treasury or even the person buying toxic assets to someone from Goldman Sachs (GS).

Oh wait, we did that already. Never mind.

Comments

[J. Fredrickson:]

I swear that Gross just tells them what to do after he gets his positions ready. He is a very smart guy, but his ability to prognosticate what the government will do next seems to be too good.

2008 Oct 09 10:17 AM

[J. Fredrickson:]

Let us not forget, he basically blackmailed them into the bailout of FNM and FRE after he had built a huge position, by saying that "Me and my friends will not buy anymore of the paper," and like that they were gone.

2008 Oct 09 10:19 AM

[kurt walter:]

Bill Gross needs the government to bail him out. Letting the free market work on its own will be his demise.

2008 Oct 10 10:31 AM