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The troubled banks make up the reserve bank. So it lent the Fed government money to bail out banks & other institutes. So how does it make record profit?
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Quote: The payment reported by the Fed came from $46.1 billion in earnings from the securities it held last year. Such income rose largely because the Fed's holdings of securities mushroomed, though increases in the value of the securities also helped, Fed officials said.
nice trade, buy the rubbish of the banks for next to nothing and watch it rise in value as the markets improve......
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