SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: yard_man who wrote (51599)12/27/2000 2:28:59 PM
From: accountclosed  Read Replies (1) of 436258
 
why do the banks do all this? for the spreads. they make markets to their clients, i.e. institutions and high net worth individuals. they have the product in inventory credited to their customers accounts. if they need reserves, they sell either for their own account or on behalf of a client and they scoop up spreads and commissions. the bond market is way larger than the stock market. they have books just like a nyse specialist and are constantly doing transactions for spreads and for settling their own account at the fed in terms of reserves.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext