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View Diary: San Jose: Millions Withdrawn from Bank of America and Wells Fargo! (288 comments)

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  •  Different markets. (2+ / 0-)
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    Senor Unoball, Sparhawk

    When most people talk about bank stock trading they are describing what is known as "proprietary trading".  (Trading for an internal account, rather than trading only for customer demand.)

    I spent most of two years as a prop trader.  Even though I never handled one dollar of customer money, the material for that is on the securities license exam.

    "Brokerage services offered to customers" are something that many or most people would say is a reasonable activity for Banks.

    There are plenty of non-stock markets that are not what people often think of when they talk about trading.  "Commercial Paper" is a very short term bond market - durations less than a week are common.  Oftentimes companies need short loans to cover payroll before a customer payment clears, etc.

    I don't know for sure, but I would expect that many credit unions are players in the Commercial Paper market.  It's possible that they are entirely invested in local commercial and residential property mortgages, but that would leave a lot of odd small dollars sitting around.

    The Treasury Bond market and other Bond markets are almost certainly something that Credit Unions invest in.

    -7.75 -4.67

    "Freedom's just another word for nothing left to lose."

    There are no Christians in foxholes.

    by Odysseus on Thu Oct 13, 2011 at 03:33:50 PM PDT

    [ Parent ]

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