Bill Nelson on How Bank Examiner Preferences are Obstructing Monetary Policy
Macro Musings with David Beckworth
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The Standing Repo Facility
The Standing Repo Facility is a lending facility that the Fed created just this last July 21st. It's like the discount window, but it provides repos against treasury securities and agency mortgage back securities to virtually riskless securities in open market operations. This could be part of their contingency liquidity planning. As far as I've been able to learn, the Federal Reserve is not allowing banks to say, well, we'll convert this to cash at your new standingRepo facility. That doesn't really make sense for them to sign up because it's expensive to do so. But if they can't even pass their tests, what does that mean?
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