Do all banks sell fixed asset, government securities?
All banks can trade government securities in the secondary market just like any investor can buy a stock in the secondary market (but can’t necessarily participate in an IPO). Only 18 “primary” banks (as selected by the Federal Reserve) can buy treasuries when issued in an auction by the Fed on behalf of the Treasury Department. So to answer your question. Only the Fed can sell them when issued and only primary banks can sell them into the secondary market.
Related Questions
- Are securities held at banks being supported by the United States government TARP program safer than securities held at other broker-dealers?
- What are the Dos and Don’ts prescribed by RBI for the Co-operative banks dealing in Government securities?
- How do the Government Securities compare with respect to various Fixed Income products?
