Good information is the most valuable commodity one can posses. When good information comes from one of the most powerful entities in the known universe, the Federal Reserve, this is especially the case. Getting early access to whether the Fed will lower rates, raise rates, or keep them the same would be the ultimate advantage for an investor. Yesterday the world learned that such an advantage was given to some of the worlds largest banks, accidentally.
The Fed initially said recipients were primarily congressional staffers and trade organizations. A list of 154 recipients released later by the Fed show that banks also were among them. The list included Barclays Plc, BB&T Corp., BNP Paribas SA, Capital One Financial Corp., Citigroup Inc. (C), Fifth Third Bancorp, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Nomura Holdings Inc., PNC Financial Services Group Inc., Regions Financial Corp., U.S. Bancorp, UBS AG and Wells Fargo & Co.
Other financial firms included IntercontinentalExchange Inc., the Atlanta-based owner of the world’s largest credit- default swap clearinghouse that has agreed to buy NYSE Euronext for $8.2 billion; buyout firm Carlyle Group LP (CG), and financial- market data provider Standard & Poor’s.