The Fed does not want to see all the money it has give to brokerages in exchange for lousy paper to go down the toilet so it has stationed its own personnel in the firms to keep and eye on things.
According to The Wall Street Journal “For the first time in more than a decade, the Federal Reserve has set up shop inside brokerages to monitor their financial condition” Bernanke has been reading George Orwell’s “1984”
The sleuths are stationed at Goldman Sachs (GS), Bear Stearns (BSC), Morgan Stanley (MS), Lehman (LEN), and Merrill Lynch (MER).
It is too much to hope that they will not find anything.
Douglas A. McIntyre