Wednesday, March 24, 2010

Why we have big banks

The New York Fed tells us:
  • Primary dealers are banks and securities brokerages that trade in U.S. Government securities with the Federal Reserve System.

  • As of September 2008, there were 19 primary dealers.
  • Primary dealers' daily average trading volume in U.S. Government securities approximately $570 billion during 2007.
Unless we find another global reserve currency, Congress itself will require Too Big to Fail banks, they are a necessity.

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