Wednesday, February 2, 2011

NY Fed Names Two New Primary Dealers

The New York Federal Reserve has added MF Global Inc. and SG Americas Securities, LLC to the list of Primary Dealers.

PDs are the elitist banks that are cleared to trade directly with the Federal Reserve, when the Fed conducts its money pumping operations. I suspect that the Fed through these trading operations shoveled billions to PDs by buying high from the PDs and selling low to them, during the financial crisis.

Not surprisingly, the Chairman and CEO of MF Global is the former Chairman og Goldman Sachs, Jon Corzine.

SG America is a subsidiary of Société Générale. Société Générale has always been a favorite son of the U.S. power elite.

AIG has disclosed that, among its counterparties, Société Générale was the largest recipient of both credit default swap (CDS) collateral postings ($4.1 bn) and CDS payments ($6.9 bn), payments made possible by the 2008 U.S. government bailout of AIG.


  1. I commented on this here in November:

    Reason for the hold up was several pending lawsuits and regulatory actions, the last of which were settled two weeks ago. Expect them to be a key swap dealer with a Corzine/Gensler tag team.

  2. I believe austrian friendly economist Frank Shostak works as an analyst for MF Global.

  3. Why more PDs and why now? More avenues to pump money into the system?