The World's Most Important Trading Desk Is Not At Goldman, But Is On The 9th Floor Of 33 Liberty Street

Tyler Durden's picture

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Gilgamesh's picture

That 'sick joke' describer from AE is very befitting to much of what is going on in today - behind the scenes, or in plain view.

E pluribus unum's picture

" But the best outcome would be that the Fed would be forced to start filing 13-F/G/H reports listing its holdings.... The best way to achieve this is to show what stocks the Fed is currently a holder of."

There's no reason for the "little people to know. As long as the boys at GS know what to buy, the rest of us will just follow.


Please stop bothering the Fed. They know what's best for us. We, the sheeple, will do as we are told.


curbyourrisk's picture

"We, the sheeple, will do as we are told."

 Forrest Gump almost had it right.

Stupid does...what stupid is told to do.



Greyzone's picture

The people at the top own the banks, the Fed, the majority of the courts, the US Congress, and 1600 Pennsylvania Avenue. Do you seriously expect them to just hand it all back to you if you ask nicely, pretty please, with sugar on top?

You live in a 21st century analogue to a fascist state as defined by Mussolini, that deep ugly marriage of corporations and government at the expense of the individual. You can't vote it out because they own the voting machines.

Your only choices are:

1. Accept.

2. Fight.

3. Emigrate.

That's it. That's what you can do. The majority has clearly decided to accept. No one is visibly fighting. Some people are visibly emigrating to escape. While there's no perfect answers elsewhere in the world, there are plenty of places that are less bad. I suggest renewing passports while it remains possible to do so. If you're really brave, then you may want to "Take the Gap", as the Brits say.

Mark Beck's picture

Really, after the financial crisis, and ridiculous derivative/swap risks by investment banks, like Bear Stearns, I do not really see an overwhelming intellectual mastermind from anywhere. Be it Rothschild, Gump or Big Bird. If you wanted to take risks in derivatives, why not create a separate corp to test the waters? No, lets bet the whole 80+ year history of the Bear Stearns Company. What? are you serious? What people do they have on staff that cannot correlate mean wages to mean house prices? or give a down side risk to holding an investment you are unable to sell because it cannot be priced accurately in a falling market. Idiots.

No, stupid is as stupid does, and I see a whole lot of stupid from NY to Washington.

Problem Is's picture

"Hello, Leon? Timmay here. Hey read this post on ZH would you?"

"Put this "curbyourrisk" on the terrorist watch list for me and uh... all the Goldman guys say 'Hi Leon'..."

"Hey! Who took Jamie off of my speed dial again?"

lieutenantjohnchard's picture

does the fed utilize hft? or dark pools?

Athena's picture

Do they have a HAL 9000 co-located at the NYSE?

Big Red's picture

Maybe a herd of Non-Stop Himalaya's

_Biggs_'s picture

Good question.  You have to figure it is cloaked if this is "news."

MinnesotaNice's picture

The markets group grew enormously during the crisis, from about 225 employees to 400 people who monitor the markets for the Fed, manage its portfolio and run the many new trading programs it has started. The Fed holds more than 20,000 individual securities.

I wonder what the value of their portfolio is? How much leverage do they really have to independently move the markets... or perhaps as Joe Cocker would say... how much market moving must they do "With a Little Help From My Friends".

Athena's picture

After discounting the Fed's initial price due to their nondenumerable debt to equity ratio, any positive price for the Fed's IPO is too much.

Anonymous's picture

Central Planning Committee good for economy, comrade.

earnyermoney's picture

I seem to recall a congressman asking the Federal Reserve's legal counsel if the Federal Reserve was purchaising equities in an attempt to manipulate the market. The assertion was denied by the individual if my memory is correct. This article seems to contradict the testimony of the Fed's lawyer.

Brett in Manhattan's picture


"(which some claim is merely HoldCo to the Fed's OpCo)"


William C. Dudley became the 10th president and chief executive officer of the Federal Reserve Bank of New York on January 27, 2009. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee (FOMC), the group responsible for formulating the nation’s monetary policy.

Mr. Dudley had been executive vice president of the Markets Group at the New York Fed, where he also managed the System Open Market Account for the FOMC. The Markets Group oversees domestic open market and foreign exchange trading operations and the provisions of account services to foreign central banks.

Prior to joining the Bank in 2007, Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and was the firm’s chief U.S. economist for a decade.

Stevm30's picture

Makes sense to me.

Anonymous's picture

New York Fed just practicing Mishkin's bubblenomics, on steroids.

Anonymous's picture

I thought it was illegal for the Fed to actively trade?


aka_ces's picture

"the increasingly more irrelevant S&P 500"

=> what's the chance of migration to some (new?) extra-tentacle exchanges, where markets are approximately free ?  Is this possible ?



Anonymous's picture

Not to the Sea of Cortes, where Humboldt Squid attack and begin eating one of their own kind. This squid, which commonly eats injured members of its own species, has been appearing in the sea in increasing numbers as other predators vanish. That's life (or not) in tentacle world...
God's work...

Anonymous's picture

Gold Man Sack then?

Anonymous's picture

Let's just take them out one by one. I mean, we do have the right to overthrow tyrannical forces by any means necessary. =D

aka_ces's picture

("tentacle" in the broad-tentacle, big-tent meaning, i.e. not just GS but also the other big squids)



RozzertheDropsky's picture

And another piece of the puzzle snaps into place. Could these revelations have anything to do with why Geithner thought an audit of the Fed would be "problematic?"

jm's picture

So they have unlimited money to prop up markets.  What happens when they have in their purview to tank industries out of favor by the executive branch, like say, health care or coal miners.  Or a company with highly visible opposition to Fed policy.

They can even self-finance these little ventures without printing any money.  How about shorting new bond issuance and buying CDS protection to help drive down the price, and profit on the short position?  

You have inside info on imminent bank implosions?  Self-funding bailout for the favored.  

Probably doing this already. 

JackAz's picture

An analog with the natural world: the Fed and the TBTF banks are cancers in the body of the economy. The problem with cancer is that it tends to grow, sucking more and more energy from the host body. The good news is that this growth tends to be self-limiting: at some point, the cancer requires more energy than the host body has and thus the cancer cannot grow. The bad news of course is that the host body tends to be "marked zero" when this occurs.

But - hey - I'm optimistic. All we have to do is wait for the Fed/TBTF cancer to kill the economy, then it will die, and a miracle resurrection will occur for the economic body, assuming there are any people left alive to trade with one another.

Can bankers be burned for fuel? When TSHTF, that would be good information to have.

cthulhu's picture

IPO the Fed....great idea! And just think, there are so many other secretive, semi-clandestine groups whose only applicable laws are the ones they choose to observe. IPO the Cosa Nostra! IPO Colombian cartels!....

Anonymous's picture

Sounds like nothing but a giant circle jerk!

Benthamite's picture

Speaking of Loeb, I would not be surprised if he actually reads ZH.

Anonymous's picture

The Federal Reserve is trading stocks and shares on the NYSE! -that has to be the end of the line for the US financial system. That's pure Marxism...and in a jobless recession -the imputed value of the dollar set to plummet if it is linked to Reserve Balances through private firms equities. How is the US going to fund its overseas operations,? No Gold and no fiscal discipline, and we were wondering how to bring the system to an end -it's a bit messy, but it works.

Anonymous's picture

Wow. As much as I want to believe that there is a New World Order, which in concept assumes a master intelligence, the evidence suggests that "some greater power" simply cannot exist given the events of the last eighteen months, give or take 200 years. Greed does not equate to intelligence. It is just greed. Power. Control. If we could somehow peel back the force-fed (and behind closed doors) history of our nations "story" and uncover the one true best course or paths that may have provided the greatest benefit to the majority of its citizens (The Republic), at what point does personal gain have to be factored out (Capitalism?) and we tip into Socialism? I am no fan of either in their purest state and I want to believe that "The Great Experiment" - you know: The Constitution, The Bill of Rights - The United States of America, is in full effect. It suggests we can change much of what we have become. No one held a gun to your head to buy that toy, house, education, trip, surgery ... we all made individual choices - though we can argue that someone/something/some-force set the bait. We have our own blood on our hands as much as we surely know there are forces way beyond our control that had buckets of the red stuff as well. But we are intelligent in theory and that suggests a way out of this mess. How is the question.

Dennis H

CB's picture

Well said, but one must acknowledge how the sheeple can be easily led astray by well-intentioned and rather intelligent folks doing ***God's Will*** (aside from Bilderbergs & Lizard people, this is my new favorite bankster theme to pound upon).

Anonymous's picture

Ah, shoot yourself in the Fed, I mean head and then see the World Trade Center buildings, you rigged to implode, fall. Are you sure this 39 year old punk is not Tyler.

Anonymous's picture

Ah, shoot yourself in the Fed, I mean head and then see the World Trade Center buildings, you rigged to implode, fall. Are you sure this 39 year old punk is not Tyler.

Anonymous's picture

9th floor? Hmmm, this guy is probably a 33 degree mason so... His office is probably 911. Liberty, ha! The inversion is as ironic as 666 Citi Bank, which was Benjamin Le Creme's old office. This boy is obviously influenced by swine, a Legion of fools, that accept Mietraya as their new world order Mahdi messiah.

agrotera's picture

oops, the  privately held federal reserve owns more than half of all the DOW and also maybe half of all capital markets (who knows?) already...this robocat ain't coming out of it's bag since they own our country's elected officials, and they run an army of lobbyists(led by master x-enron lobbyist) to keep their gangster legislators happy. 

Meanwhile, we the people are busy scratching our heads since our of, by, and for the people government has indeed perished from the Earth and this fact bumps into our cognitive dissonance...we are a brainwashed, manipulated nation, suffering from cognitive dissonance and inertia.

TumblingDice's picture

When the fed owns every security out there will it really own anything at all? I think not.

spisskyhrad's picture

Whether global warming, fixing health care or healing our "broken"

financial system, our power elite's siren call for

just a little more power continues. Monopolies are broken

in financial downturns.  Time is running out for

the the Al Gore set(who's favorite Bible verse is John 16:3).