I received news of a “NewBank” from a Fed Watcher. I’d like others to comment on the attached file because I do not know what this Fed initiative is all about. I'm always trying to learn.

”Bill, I don't know if you had seen this announcement (initiated by the Federal Reserve) to create a "standby bank".

http://www.bondmarkets.com/story.asp?id=2306

What crisis? Why would the Federal Reserve go through all the trouble and expense to prepare for such an event, and clearly spell out the reason? Is it connected to the elimination of M3 reporting?

clearly worried about one of two things.

Could it be derivatives related?
(Latest Annual Volume Survey- 9,899,780,283 contracts traded)-

Or the new line of hybrid securities?

Good luck with your new project!

Regards, Jim”

Fed NewBank doc download