insurance companies and mutual funds

in new network cheap MLB Jerseys on 20 June, according to the British "Financial Times" reported 20, the Fed (Fed) decided to fund and government monetary market in the repo market transaction size increased three times, which indicates that the central bank, America now more directly with the shadow banking system (instead of the big Wall Street banks) to deal with.

report, the Federal Reserve Bank of New York (Federal Reserve Bank of NewYork) has become one of the largest participants an important field of short-term loan market. The territory was in financial crisis epicenter.

traditionally, large banks to include money market funds, insurance companies and mutual funds, lenders in the repo market, its holdings of USA treasury bonds and other securities collateral, in return for short-term financing. Now the Fed is in preparation for the end of the current near zero interest rate policy on the occasion, also entering a trade.

Fed purchases of $4.3 of bonds in QE period. It is with this huge balance sheet size, through the inverse repurchase program it calls (RRP) and monetary fund transaction, while the harsh new regulatory standards to make the Bank of such lending interest drop.

The

report points out, Cheap new era hats the money market fund surged and the Fed's transaction, rather than lending to banks.

Fitch rating (FitchRatings) a study showing that, from 2013 September to the end of year 5, the government money market fund and the New York Federal Reserve repo transactions increased by $65000000000, to $87000000000, discount oakley sunglasses and Traders Bank repo transactions by $38000000000. The Federal Reserve to increase shown to participate in the repo market, it is being tested in short-term interest rates to control new way, prepare for tightening monetary policy. When the official short-term rates eventually is pushed up, the Fed plans to use the RRP to recover liquidity -- through short-term cheap jerseys from china lending its huge assets on the balance sheet USA bond in the financial system.

report, Fitch managing director Robert · Grossman (RobertGrossman) said, changes of the fed in the repo market mode is the dramatic, the America central bank may RRP to enhance its role in the.

Fitch said, since the Fed launched RRP, the relationship between government and banks, money market funds have changed. Citigroup (Citigroup), USA Bank (Bank ofAmerica), Credit Agricole (Cré wholesale jerseys china DIT Agricole), Goldman Sachs (GoldmanSachs) and the Royal Bank of Canada (RBC), banks now rely less on money market fund financing, and as of May 31st, the French bank of Paris (BNPParibas), Deutsche Bank (Deutsche) and Barclay (Barclays) is most dependent on repo financing bank.