http://www.goldismoney2.com/ This forum is for exposing the workings of the Fed and who owns it... How it was created. en Sun, 19 May 2013 22:52:16 GMT vBulletin 60 http://www.goldismoney2.com/images/scarletrush/misc/rss.png http://www.goldismoney2.com/ http://www.goldismoney2.com/showthread.php?46480-Bernanke-Warns-of-‘Important-Risks’-in-Wholesale-Funding-Markets&goto=newpost Fri, 10 May 2013 14:26:58 GMT Federal Reserve Chairman Ben S. Bernanke said risks persist in wholesale funding markets used frequently by Wall Street brokers to finance securities trading. “Important risks remain in the short-term wholesale funding markets,” Bernanke said today in the text of a speech at a Chicago Fed banking... Federal Reserve Chairman Ben S. Bernanke said risks persist in wholesale funding markets used frequently by Wall Street brokers to finance securities trading.
“Important risks remain in the short-term wholesale funding markets,” Bernanke said today in the text of a speech at a Chicago Fed banking conference. “One of the key risks is how the system would respond to the failure of a broker-dealer or other major borrower.”


Bernanke outlined how the Fed has overhauled risk monitoring since a collapse in mortgage finance triggered a crisis in 2008 that led to the worst recession since the Great Depression.
“More work is needed to better prepare investors and other market participants to deal with the potential consequences of a default by a large participant in the repo market,” Bernanke said. He said that the “possibility of a run” on money-market funds remains.

Bernanke said the financial crisis revealed that the market for repurchase agreement funding -- where a securities dealer uses collateral for short-term loans with an agreement to reverse the transaction later -- was “quite fragile.”
“As questions emerged about the nature and value of collateral” during the crisis, “worried lenders either greatly increased margin requirements or, more commonly, pulled back entirely,” the Fed chairman said. “Borrowers unable to meet margin calls and finance their asset holdings were forced to sell, driving down asset prices further and setting off a cycle of deleveraging and further asset liquidation.”
Bernanke said researchers at the U.S. Treasury and the Fed are attempting to construct data sets on triparty and bilateral repo transactions to help better monitor activity. The Fed is also looking at ways dealers may be funding less-liquid assets or “transform risks from forms that are more easily measured to forms that are more opaque.”
The Fed chief has elevated market and institutional surveillance to an equal footing with Fed macroeconomic research and forecasting, establishing the Office of Financial Stability Policy and Research headed by PhD economist Nellie Liang.
To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net.

http://www.bloomberg.com/news/2013-0...g-markets.html ]]> Federal Reserve REO 54 http://www.goldismoney2.com/showthread.php?46480-Bernanke-Warns-of-‘Important-Risks’-in-Wholesale-Funding-Markets http://www.goldismoney2.com/showthread.php?45612-Bernanke-to-Skip-Jackson-Hole-Due-to-Scheduling-Conflict&goto=newpost Mon, 22 Apr 2013 18:13:56 GMT Bernanke to Skip Jackson Hole Due to Scheduling Conflict Published: Sunday, 21 Apr 2013 | 3:56 AM ET U.S. Federal Reserve Chairman Ben Bernanke will miss the annual Jackson Hole monetary policy symposium this year due to a scheduling conflict, skipping the prestigious event for the... Bernanke to Skip Jackson Hole Due to Scheduling Conflict


Published: Sunday, 21 Apr 2013 | 3:56 AM ET



U.S. Federal Reserve Chairman Ben Bernanke will miss the annual Jackson Hole monetary policy symposium this year due to a scheduling conflict, skipping the prestigious event for the first time since taking the helm of the central bank in 2006.

The conference, held in late August in the splendor of the Grand Teton National Park in Wyoming, draws top central bankers from around the world. Bernanke's absence would mark the first time in 25 years that a Fed chairman has not attended.

A Fed spokeswoman, responding to a Reuters enquiry, said the chairman was currently not planning to attend because of a personal scheduling conflict.

Bernanke, and former Fed chair Alan Greenspan, whom he succeeded in 2006, have periodically used the setting to preview important U.S. central bank actions. For instance, Bernanke hinted at the impending launch of a third round of massive bond purchases by the Fed - dubbed QE3 - at the conference last August.

In 2008, the conference effectively became the site of an economic war room as top policymakers huddled to figure out how to tamp down a virulent financial crisis as investment bank Lehman Brothers hurtled toward collapse.

This year's meeting would have been viewed as an excellent opportunity for Bernanke to signal that the central bank might be leaning toward tapering bond purchases, if the economy continues to recover as officials hope.

The Fed is currently buying $85 billion worth of U.S. Treasury and mortgage-backed bonds every month, and is expected to vote to maintain that pace at its upcoming meeting on April 30-May 1.

The Jackson Hole event is the foremost monetary policy conference in the annual global central banking calendar and gathers a who's who of policy thinkers and practitioners.

Started by the Kansas City Federal Reserve Bank in 1978, the symposium is held in the park's Jackson Lake lodge, overlooking the majestic Teton mountain range.

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