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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: Ken98 who wrote (71128)10/22/1999 11:45:00 AM
From: Defrocked  Read Replies (2) of 86076
 
If they play "hanky panky" I'm sure it
will be at a penalized rate above market.
Most firms will want to go the other
direction,IMHO, and be extra cautious as
the end of year appoaches. The facility
is supposed to be used for a backup or as
insurance. Besides, B/Ds have to take all kinds of
haircuts on regulatory capital. Scrambling
around for funds would be viewed by regulators
and the Street as poor form and bad management.
Not to say there won't be any bad apples but their
reputation would get tarnished, potentially increasing
their borrowing costs over the longer run. BWDIK.
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