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To: Doug who wrote (75670)	4/22/2001 1:22:16 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99985

Doug what do I know ? The FED can set higher margin in financial markets exactly like they set FED Funds rates. My only conclusion is that the FED is an inherently corrupt organization (by law) by means of the ownership by members who are regional banks who are also stock brokers and WS entities, if directly like C or BA for example or trough the assets they manage. Many relate to the FED as an independent organization which it is not. The law governing the FED and it's ownership which results in substantial influence on financial market is flawed. Haim

To: Doug who wrote (75670)	4/22/2001 2:11:05 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 99985

Doug, the margin requirements and the lack of any change in these since the 70' is one point where Haim and I disagree on quite a lot. Haim believes the Feds should take action on that front, and my opinion is that they should leave that alone. My rationale is very simple, prior to the existence of massive derivative markets, changing margin rules had quite an influence on the market and the amount of leverage in the market, but now, the derivatives market provides for all the speculative leverage any one may want. Changing margin rules will have no impact, thus I believe the desertion by the fed's of that potential weapon in their armamentarium. Zeev