Questions Raised as Wall Street Reaps Outsized Profits From Trading With Federal Reserve

by Benjamin Domenech on 8:40 am August 3, 2009

“The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets.” But unlike other players, the Fed has to announce these purchases in advance: “this strategy enables banks to sell these securities to the Fed at an inflated price.”

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