Shady Deals or Desperate Measures?

The Fed is accepting investment grade commercial paper at discount window.

The Federal Reserve Bank of New York today affirmed its policy of accepting “investment quality'’ asset- backed commercial paper as collateral for loans. (Bloomberg)

Also, the Fed has allowed Citigroup and Bank of America to jeopardize FDIC insured accounts to the tune of $50 billion ($25 B each) in order to bail out their trading desks. See this article.

Wow!