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The Fed has no idea of which other primary dealers may be insolvent as it does not supervise and regulate those primary dealers that are not banks.
It does this through temporary repurchase agreements with these primary dealers.
It is an electronic broker that is owned by the major primary dealers.
The Fed has been conducting three-party repos with primary dealers since 1999.
Primary dealers are required to bid, though not buy, at government sales.
Primary dealers are the designated securities firms that deal directly with the New York Fed.
The Federal Reserve conducts its open-market operations only through primary dealers.
With Midland Montagu's defection yesterday, there are now 42 primary dealers, 15 of them foreign-owned.
The addition and deletion keeps the number of primary dealers at 44.
In its routine money market operations, the Fed uses most, if not all, the primary dealers.
Mr. Corzine has previously told lawmakers that the firm was better than some other primary dealers.
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