Friday, July 11, 2008

Federal Reserve: Send in the Helecopters, No GSE Left Behind (FNM; FRE)

UPDATE: The Fed says there have been no discussions. Link
From Reuters:

Bernanke tells GSE discount window open
Federal Reserve Chairman Ben Bernanke told Freddie Mac chief Richard Syron that his company and Fannie Mae could take advantage of the emergency discount window, said a source familiar with a conversation between Bernanke and Freddie Mac chief Richard Syron.

Bernanke and Syron spoke by telephone Thursday afternoon and in that call the central bank chief said he intended the discount window to be open to the two companies, said a source familiar with the phone conversation.

The Fed declined comment on whether its discount window might be opened to GSEs. Freddie Mac spokesman Douglas Duvall declined to comment when asked about the phone call


We have previously posted these insightful commentaries:

From Depression risk might force U.S. to buy assets:

CH-47 Chinook Helicopter

From Central Banks to "Flood" Markets with Liquidity:

From Climateer "Quote of the Day" Federal Reserve Edition:

I have two problems but only one tool.

-Ben Bernanke
Testimony to the House Budget Committee
Jan. 16, 2008

From Bernanke-New Sheriff in Town?: