Skip to main content

It would seem those "surprised analysts" should study up on The Fed some more ... and their quiet efforts to make Bankers whole and fully profitable, again. (aka QE3)

Goldman Sachs Q2 earnings double

by Tim Mullaney, USA TODAY -- July 16, 2013

Goldman Sachs said its second-quarter profit doubled, as the giant investment bank saw revenues climb 30% while stock and bond underwriting sales rose by nearly half.

Goldman said it earned $1.93 billion for the three months ending June 30, or $3.70 a share. The results handily topped analysts' average estimate of $2.87 a share in net income, according to FactSet.

I wonder how much of this recent Fed Buyback Investment had to do with Goldman's surprising profits?

    Mortgage-backed securities (4)                  $1,208,139,000,000

The bank nearly tripled its revenue from investing in bonds for its own account, to $658 million, the company said. Part of that reflects profits made before interest rates began to rise late in the quarter. Additionally, banks like JPMorgan Chase and Citigroup have been able to exploit the fast-changing rate environment to boost profits, Edward Jones analyst Tom Lewandowski said after Citi reported its earnings on Monday.

Yup, those Wall Street Bankers need all the help they can get apparently. Now if only they would do something about Jobs.  And Loans.  And investing in Small Business ...

You know the stuff Banks used to do. Before they became "speculators" ... and "hoarders of wealth."

About that Federal Reserve's ongoing 'welfare program' for Wall Street ... as they continue to move their "bad assets" on their balance sheets -- onto ours.

The Fed's Transparency Report

Federal Reserve Banks --
FEDERAL RESERVE statistical release


1. Factors Affecting Reserve Balances of Depository Institutions

Millions of dollars --

                                                               Week ended
Averages of daily figures                                 Jul 10, 2013

Reserve Bank credit                                         3,456,317
  Securities held outright (1)                              3,225,347
    U.S. Treasury securities                                1,948,028

    Federal agency debt securities (2)                       69,180
    Mortgage-backed securities (4)                  1,208,139

  Net portfolio holdings of Maiden Lane LLC (8)            1,414

Foreign currency denominated assets (14)                 23,170
Gold stock                                                           11,041

Treasury currency outstanding (15)                          45,167


Who are is these “primary dealers” the Fed keeps talks about, euphemistically?

The Big Banks Expect Quantitative Easing Into Early 2014

Business Insider -- 01/04/2013

The New York Fed’s primary dealers, the 21 banks with which it carries out transactions, expect quantitative easing to continue until 1Q 2014. This is according to a Dow Jones Business News report. The primary dealers’ median expectation is that the Fed will continue to purchase $45 billion worth of Treasuries each month throughout 2013, and cut that to $35 billion per month in early 2014. These findings come from a survey of primary dealers that was conducted before the December FOMC meeting. [...]

Do these “primary dealers” on the receiving end of the Fed's unending line of credit, do they have names?

Primary Dealers List

New York Federal Reserve --
Primary dealers serve as trading counterparties of the New York Fed in its implementation of monetary policy. [...]

Bank of Nova Scotia, New York Agency

BMO Capital Markets Corp.

BNP Paribas Securities Corp.

Barclays Capital Inc.

Cantor Fitzgerald & Co.

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

Daiwa Capital Markets America Inc.

Deutsche Bank Securities Inc.

Goldman, Sachs & Co.

HSBC Securities (USA) Inc.

Jefferies LLC

J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Mizuho Securities USA Inc.

Morgan Stanley & Co. LLC

Nomura Securities International, Inc.

RBC Capital Markets, LLC

RBS Securities Inc.

SG Americas Securities, LLC

UBS Securities LLC.

Say hello to the Fed's Golden list.

The Federal Reserve makes the gold, and these 21 wonder-kids, they 'book' it.


If only there were some "strings attached" to those Wall Street Bailouts ...

But that would have "hampered the free-market" right?

The merchants of fiat capital, could never have that, could they?

Well, not as long as we say:  "Okay, whatever.   Thanks Wall Street."

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site