Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sphar who wrote (7743)	12/24/1998 10:45:00 AM
From: Paul Berliner	Read Replies (1) \| Respond to of 9980

Fed's Y2K precautions: I found the text of the Fed's decision to extend REPOs to 60 days, which in essence gives the banks 60 days to have the panic-withdrawals back instead of the previous max of 15. They mention Y2K in it, too. I found it on the FOMCs Nov. 17th minutes which was just released publicly yesterday. Here's the excerpt on the 60-day Repos. Man, are they good. On the recommendation of the Manager, the Committee voted unanimously to amend the authorization for domestic open market operations to extend the maximum maturity of System repurchase agreements from 15 calendar days to 60 calendar days. The purpose of the expanded authority was to enhance the flexibility of the Manager in meeting reserve supplying objectives during periods of pronounced seasonal needs, notably those associated with the year-end. Subject to the Committee's approval, the Manager would initiate the System's use of extended-term repurchase agreements ahead of the coming year-end, and he anticipated that such use could prove to be especially advantageous in late 1999 to the extent that year 2000 concerns generated accentuated seasonal demand for currency. In addition, the availability of the extended funding could help to allay concerns in the federal funds market about the cost of financing during periods of peak seasonal pressures, with favorable effects on the market's functioning. ------ for more: biz.yahoo.com