from Zero Hedge
Authored by Mike Whitney via The Unz Review,
The Fed is reopening its most controversial and despised crisis-era bailout facility, the Primary Dealer Credit Facility. The Wall Street Journal describes the PDCF as “an overnight loan facility for primary dealers (that) provides round-the-clock backup source of funding to banks.”
The WSJ’s description grossly understates the facility’s real purpose which is to transfer the toxic bonds and securities from failing financial institutions and corporations (through an intermediary) onto the Fed’s balance sheet.