dChan
Anonymous ID: d72ca6 Feb. 25, 2020, 9:39 a.m. No.8244573   🗄️.is 🔗kun   >>4679 >>4697 >>4737 >>4783 >>4788 >>4911

Federal Reserve Bank of NY. Repo. operations-a primer: today's Repo., background and structural info.on the FRB

 

FRBNY 022520 Repo. Operation

Today's Repo Operation Cap#2

$74.46B in transactions.

Of this amount a total of $27.956b was mortgage backed securities

$46.504 in Treasury notes/bonds

Two offers today and of note: The first one that hit at 8:15am EST was oversubscribed by $15.225b which means that the banks (cough JP Morgan and Frens) showed up with an additional $15.225b that the fed did not accept. 30 minutes later, at 8:45am EST- another one was offered.

https://apps.newyorkfed.org/markets/autorates/temp

 

Here is some background on the overall Repo/Reverse Repo. This is the way the the Banking system (All of it) controls the Federal Reserve as well as the highly compartmentalized system in which it processes transactions, relationship to the Treasury etc.-the Federal Reserve itself holds almost no gold. They own promissory notes from the Treasury Department.

 

Repo vs. Reverse Repo: What's the Difference?

The repurchase agreement (repo or RP) and the reverse repo agreement (RRP) are two key tools used by many large financial institutions, banks, and some businesses. These short-term agreements provide temporary lending opportunities that help to fund ongoing operations. The Federal Reserve also uses the repo and reverse repo agreements as a method to control the money supply. Essentially, repos and reverse repos are two sides of the same coin—or rather, transaction—reflecting the role of each party. A repo is an agreement between parties where the buyer agrees to temporarily purchase a basket or group of securities for a specified period. The buyer agrees to sell those same assets back to the original owner at a slightly higher price using a reverse repo agreement. Both the repurchase and reverse repurchase portions of the contract are determined and agreed upon at the outset of the deal.

https://www.investopedia.com/ask/answers/041615/what-difference-between-repurchase-agreement-and-reverse-repurchase-agreement.asp

 

Does the Federal Reserve own or hold gold?

 

The Federal Reserve does not own gold. The Gold Reserve Act of 1934 required the Federal Reserve System to transfer ownership of all of its gold to the Department of the Treasury. In exchange, the Secretary of the Treasury issued gold certificates to the Federal Reserve for the amount of gold transferred at the then-applicable statutory price for gold held by the Treasury. The statutory price of gold is set by law. It does not fluctuate with the market price of gold and has been constant at $42 2/9, or $42.2222, per fine troy ounce since 1973. The book value of the gold held by the Treasury is determined using the statutory price.

https://www.federalreserve.gov/faqs/does-the-federal-reserve-own-or-hold-gold.htm

>I encourage other anons to tag with your detailed information of the History of the Federal Reserve as there is much and not enough space in a post to do that.

 

Now remember this is their site and it explains it the way they want it -it operates on private land and it's ownership structure is based on issued shares (that are not liquid) and owned by the big banks.

 

Structure of the Federal Reserve

https://www.federalreserve.gov/aboutthefed/structure-federal-reserve-system.htm

https://www.federalreserve.gov/aboutthefed.htm

 

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This is the hot botato game played with "paper". It has not been done with paper for a long time. Banks, Hedge Funds, Commodity Mkts, Market Exchanges, Brokers, etc. exist for the skim, as to say, if you/we transact-we get a cut. The Federal Reserve perception is that it's a fully owned portion of the US Gov't- Federal Express is moar federal than it. The FRBNY facilitates this movement. It also buys and sells the debt of the banking system with these operations when it decides to. Treasury bonds, MUNI bonds, Private sector (Corp.) convertible notes, (Swaps) or commonly called derivatives-you name it. If it has a value and can be used as a debt instrument to transact you have to right place.

 

You could always ask JP Morgan at it's website….. And you really should because they top the list, and have for years with a current level of $55.24t.-page 37

https://www.jpmorgan.com/tss/General/United_States_Derivatives/1288219997782

https://www.occ.treas.gov/publications-and-resources/publications/quarterly-report-on-bank-trading-and-derivatives-activities/files/pub-derivatives-quarterly-qtr3-2019.pdf

 

For a brief look of why this amount of paper assets contained at only a few places is not a gud idea. Didn't stop them though.

 

Derivatives Time Bomb

Derivatives time bomb is a descriptive term for a possible market mayhem if there is sudden unwinding of massive derivatives positions.

https://www.investopedia.com/terms/d/derivativestimebomb.asp