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To: pater tenebrarum who wrote (15656)	9/1/2000 3:54:37 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

< simply put, by securitizing bundles of sub-prime loans and magically transforming them into investment grade paper for money market funds, the institutions involved can increase their lending again due to the securitized stuff not being subjected to reserve requirements anymore. so while the Fed is part of the pyramid, it is certainly not in control of the process anymore. > Don't some of the initiating institutions still have risk in some cases via insurance of the bundle they sold or no?? DAK