Friday, December 21, 2007

The Fed's Salt Water "Taf"fy Facility


No one can answer that question, but here's the Fed's new Taffy auctions, two of which completed this week (before many banks have year-end).

Candy takers get to remain anonymous.

Maximum bid is $2 billion (for last auction). No info on how many put in bids for the max, though.

93 bidders and no non-competes at this time. Does that seem high to you?

Discount window rules for collateral apply, however. So, if you want cash, you can get it, but it's not easy love with high collateral requirements.

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