Also known as "too-big-to-fail banks"! Thanks to the Economic Policy Journal for this list! I might also point out that only 7 of the 18 primary dealers are American companies. I think this is significant because in a pinch (think war), some of them might not be particularly loyal to the best interests of Americans. Come to think of it, they might not be loyal to American interests NOW!
from Economic Policy Journal:
These are the ultimate insiders. They are cleared to trade directly with the Federal Reserve Bank of NY. I am told that the Fed shoveled money to at least some of the Primary Dealers, after the peak in the financial crisis, by buying and selling with the PD's at huge spreads which allowed the PD's to book huge $$$$.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC
THE CHANGE: Effective November 1, 2010, Banc of America Securities LLC merged with Merrill Lynch, Pierce, Fenner & Smith Incorporated, with the latter the surviving entity. The primary dealer is now Merrill Lynch, Pierce, Fenner & Smith Incorporated.
