by We're not out of the woods yet... Fed regulatory leverage modification of last Weds. not yet agreed to by the OCC and the FDIC... "stove piped" regulatory situation...Complete incompetence...All we have with the Fed action last week was immediate avoidance of GFC2... system still stuck here with only the Fed modifying a total leverage limitation..And another thing is that Treasury has increased the TGA by about 300B over the last week reducing Reserve Assets while Fed is still on a jihad to add Reserves by B per day... so the TGA policy has been counteracting the damaging Fed policy...Fed adding 0B Reserves while Treasury draining 0B of Reserves from Depositories... we got a nice equity rally off this Treasury TGA policy last few days...Treasury at war with the Fed over Reserve
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We're not out of the woods yet... Fed regulatory leverage modification of last Weds. not yet agreed to by the OCC and the FDIC... "stove piped" regulatory situation...
Complete incompetence...
All we have with the Fed action last week was immediate avoidance of GFC2... system still stuck here with only the Fed modifying a total leverage limitation..
And another thing is that Treasury has increased the TGA by about 300B over the last week reducing Reserve Assets while Fed is still on a jihad to add Reserves by $50B per day... so the TGA policy has been counteracting the damaging Fed policy...
Fed adding $300B Reserves while Treasury draining $300B of Reserves from Depositories... we got a nice equity rally off this Treasury TGA policy last few days...
Treasury at war with the Fed over Reserve policy, while Treasury still at war with the FDIC and the OCC over leverage policy...
If TGA tops and starts to quickly reduce by large numbers (maybe those $1200 payments start to go out) we may be looking a these people causing another GFC2 yet...
For now, the Federal Reserve is the only U.S. banking watchdog that’s relaxed a landmark leverage rule that stipulates how much capital banks must hold against their assets.
The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., which also enforce the rule, have privately indicated they aren’t yet ready to follow its lead, said three people familiar with the matter.
Checkmate... AGAIN morons.... just... take... the ... L....
Two key regulators are holding off on easing Wall Street debt limits, leaving billions of dollars locked up that could be used to ease the economic crisis https://t.co/U3yyMaqAWi— Bloomberg (@business) April 7, 2020