Wednesday, April 6, 2011

FDIC Takes Aim at Bank Arbitrage Profits

Freakonomics » FDIC Takes Aim at Bank Arbitrage Profits: "
interesting article from Freakonomics pointing out "the recent rule change as part of the Dodd-Frank bill has led to a shortage of Treasury securities available in the last few days."

“A direct effect of the new assessment base is a reduction in arbitrage profits for a few large banks, profits that do little to help the real economy,” said the FDIC in the statement. “This change may have a positive impact on credit availability as resources are directed elsewhere.”"

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