Thursday, January 21, 2010


BANZAI7 NEWS--The Federal Reserve Bank of New York said Thursday it has created a proprietary trading operation modeled after 2Big2Fail Banks to oversee the parts of its balance sheet acquired in efforts to bail out failing Wall Street firms.

In a press release, the bank said this new group would be called Black Swan, and it promoted Sarah Dullgrin to executive vice president to lead the group. Dullgrin, a long-time staffer, was previously in charge of the New York Fed's relationship with American International Group Inc. (AIG), the troubled insurer that was bailed out by the central bank to protect the financial system.

"This move represents an additional enhancement to the Bank's governance, risk management and hedge fund activities in light of the tremendous expansion of the Bank's balance sheet over the past eighteen months" the New York Fed said in a press statement. They neglected to explain that risk management at the feed means taking up everyone else's crappy risk at the most riskiest possible moment.

To commerate the opening of Black Swann Fund, the Fed has organized a private concert by Ben Bernanke's favorite diva, Susan Boyle.

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