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Posted by Ed 6 mths ago
For years anyone suggesting the gov't was propping up the stock market... was called crazy...


Trump Plans to Convene Plunge Protection Team (PPT)

In lieu of firing Powell, President Trump has a new idea: Convene the PPT

President Trump now advocates intervening in the markets if he does not like the direction of the stock market. This is seriously crazy, but please consider Top Trump official calls bankers, will convene 'Plunge Protection Team'

U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

“Today I convened individual calls with the CEOs of the nation’s six largest banks,” Treasury Secretary Steven Mnuchin said on Twitter shortly before financial markets were due to open in Asia.

The Treasury said in a statement that Mnuchin talked with the chief executives of Bank of America (BAC.N), Citi (C.N), Goldman Sachs (GS.N), JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N).

“The CEOs confirmed that they have ample liquidity available for lending,” the Treasury said.

The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the “Plunge Protection Team.”

The group, which was also convened in 2009 during the latter stage of the financial crisis, includes officials from the Federal Reserve as well as the Securities and Exchange Commission.

Wow. Such stupidity.

Mike "Mish" Shedlock

https://moneymaven.io/mishtalk/economics/trump-plans-to-convene-plunge-protection-team-ppt-s8iflROUbEiLHx0E2ss45g/

https://www.reuters.com/article/us-usa-treasury/top-trump-official-calls-bankers-will-convene-plunge-protection-team-idUSKCN1OM0LJ

COMMENTS

Ed 6 mths ago
WASHINGTON HAS A PLUNGE PROTECTION TEAM?

Yes, although it does not deal exclusively with Wall Street panic. The Working Group dates to March 1988 when Washington was still trying to figure out what was behind the “Black Monday” stock market crash of October 1987.

Then-President Ronald Reagan created the group to find ways to keep financial markets operating smoothly. The group also met in 2008 during a profound financial crisis and issued recommendations for overhauling banking regulations and rules on mortgage lending. The group, however, does not always meet during a crisis. In 1999, the group issued a report asking Congress to change laws on derivatives markets.

WHY IS THE GROUP MEETING NOW?

Financial markets are not in crisis but lately they have had a very bad run. The benchmark S&P 500 stock index .SPX is on pace for its biggest percentage decline in December since the Great Depression. The Treasury Department on Sunday said the Working Group will discuss "coordination efforts to assure normal market operations." Financial turbulence is not always a sign of trouble in the economy, but Federal Reserve Chairman Jerome Powell, who is a member of the Working Group, said last week that tighter financial conditions were partly behind a downward shift in economic growth expectations.

https://www.reuters.com/article/us-usa-treasury-explainer/explainer-plunge-protection-team-to-convene-amid-wall-street-rout-idUSKCN1ON0WG


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