Conservative Economic Commentary | Topic: Funding Corporations

Obama refuses to condemn Gaddafi, while hugging Richard Trumka. #tcot Is the Anointed One trying to tell us something? >>
Van Jones, what a GOOD guy! Too bad he's a communist and that Glenn Beck has unmasked him. http://bit.ly/dQvteR Obama misses him, a lot. >>
How long before WI 'teachers', led by union thugs, start bashing heads of voters, spilling blood? #tcot Only Trumka knows. >>
Obama's reluctance to condemn Gaddafi who kills his own people with dum dum bullets explains why he got the Nobel Peace Prize. #tcot >>
How sad to have a US president held hostage (willingly) by union thugs. #tcot >>

Subject: Funding corporations

The term ‘funding corporation’ is used by the Federal Reserve Bank for certain operations in its flow of funds accounts.

The funding corporation sector comprises four types of financial institutions and entities:

Subsidiaries of foreign banks that raise funds in the US capital markets and transfer the proceeds to foreign banking offices in the US;

Subsidiaries of foreign bank and nonbank financial firms that raise funds in the US and transfer them to the parent company abroad;

Nonbank financial holding companies; and

Custodial accounts for reinvested collateral associated with securities-lending operations.

(Source: Federal Reserve Bank Explanation of Flow of Funds Accounts)

Liquidity preference 2005

Investors move to money market funds

By John Schroy, on March 12th, 2006 |

Leave a comment

For the first year since 2001, investors moved back into money market mutual funds in 2005, with net sales of $127 billion.

The return of investors to money market funds was clearly the result of the Federal Reserve policy of increasing short-term interest rates, combined with the flattening of the yield curve due to buying pressure on longer-term fixed income securities resulting from the trade deficit.

More » Investors move to money market funds