The Federal Reserve has emerged as one of Wall Street’s top customers of the financial crisis, buying massive amounts of securities to help stabilise the markets, reports the FT. In some cases, such as the market for mortgage-backed securities, the Fed buys more bonds than any other party – raising questions about whether the US central bank is driving hard enough bargains with private sector counterparties.

This entry was posted by Gwen Robinson on Monday, August 3rd, 2009 at 5:01 and is filed under Capital markets. Tagged with federal reserve. Edit this entry.