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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Perspective who wrote (247483)6/27/2003 4:14:24 PM
From: TobagoJack  Read Replies (1) of 436258
 
<<What are the implications of that? ... Are they legally required to actually maintain some capital themselves?>>

Bank of Japan is now finding that whenever it itself does not bid for its own paper, the interest rate go up, because investors got used to the moral hazard.

On the capital requirement rules, if any, do not matter, because they help to make the rules.

I would imagine that before all is done, FED will be investigated and reformed.
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