Fed Issues EQUITY/CASH

I have a coy(bank) with some bad assets, I know there bad but I can a valuation thats says these assets are AAA.

The fed will take my assets and give me TBILLS.

I sell these TBills for CASH. Which I can use for re investment for hopefully better assets than I gave the fed.

So this is really a FED fund injection into my balance sheet.

Questions
1) Am I Correct ?
2) Do I have to pay the fed back ?
3) What happens to FED when they find out the true valuation ( subject to 2 above) of the asset swaps ?

If my assumptions are correct, then FED please call me too !!!!!

- This means
- All banks or one in particular is very broke.
- Mer, C, GS all have a sugar daddy.
- This proves the FED is a VERY LARGE OFF BALANCE SHEET nice to have. The USA investing public have had the largest fraud in security valuation history going on right now !!

 

You will have to take back your AAA assets and return cash in 28 days.

http://federalreserve.gov/newsevents/press/monetary/20080311a.htm

 

Question: What sorta yield are you getting?

 

You are not getting. You are paying It is an auction. Who ever pays higher yield gets TBills for a month.

 

Christ in heaven.....no fucking shit.

Now if the first would answer up...I may have an answer for him.

 

You are not getting T-Bills, your getting straight cash. T-Bills would defeat the purpose.

 

for 28 days cash for AAA assets.

But I can rotate this trade for a very long time if I pay the price.