LOMBARD CREDIT FACILITY ARBITRAGE
January 21, 2008 – 9:53 amAre banks borrowing at the discount window and lending to other institutions at higher rates? Are they borrowing at the discount window in one jursidiction and lending to other banks in different jurisdictions? How will regulators assure stakeholders that banks are not defecting to their Nash equilibrium in this LOMBARD CREDIT FACILITY ARBITRAGE????
