FDIC - Long Firm Memorandum

[cruiser]

Long "Form" Memorandum .... LONG DAY .... sorry

http://www.fdic.gov/news/board/11May10no5.pdf

Edited May 11, 2011 by cruiser

[mhl0521]

my eyes started crossing after the first paragraph...is this good or bad?

[dnardreams]

from what I read this thing is saying that small time currency speculators will be able to freely exchange currency and will be protected from spread gouging by the banks. In addition they are saying that banks may hold active investment accounts in foreign currency, meaning you could make an investment in a speculative currency and not a registered foreign exchange, which is currently the only approved way, however, once your money is converted to the foreign currency it is no longer insured through the FDIC. Banks may currently allow you to buy and sell foreign currency but they do it through an exchange. This will allow all banks to engage in currency speculation without utilizing an exchange house. I could be totally off base because the language is confusing but I think I got most of it.

I think the thing that is most important to all of us is that we will be protected from banks charging huge rates for exchange and we will have more freedom to speculate on foreign currencies without needing to make huge investments. I'm pretty darn sure this is a good thing and comes at an interesting time. This is a boring read but you should read it and develop your own insite, like anything in this investment.

Edited May 11, 2011 by dnardreams