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October 8, 2008

Bill Gross: Luckiest Guy in the World

Apparently Bill Gross's luck didn't stop with his latest Pimco missive wherein he said the Fed needing to begin buying commercial paper. Recall: That came out only an hour before the Fed announced just such a program. Now, according to a release on the NY Fed site, his firm is in discussions to be "in support of" said newly-launched commercial paper program. Gosh, Bill is the luckiest guy in the world.

Statement Regarding Asset Management Services in Support of CPFF
October 8, 2008

The Federal Reserve Bank of New York announced today that it is in discussions with PIMCO regarding asset management services in support of the Commercial Paper Funding Facility (CPFF), a facility that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets.

Somewhat more seriously, Bill is a smart guy, and Pimco is a highly capable firm, but giving close access to credit programs so quickly to such a large player in those markets would be like giving control over Treasury or even the person buying toxic assets to someone from Goldman Sachs. Oh wait, we did that already. Never mind.

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