Despite Crimes, JPMorgan Gets Sweet Exclusive Deal Running Fed's $1.7T MBS Portfolio

``In the case of the QE assets, the contract designates the New York Fed as JPMorgan's "customer," adding another incestuous twist to the relationship Wall Street banks have with their regulator. The conflicts which the New York Fed must tolerate, as a customer handing over $1.7 trillion of its assets to JPMorgan, are breathtaking... In addition to the New York Fed's System Open Market Account (SOMA) oversight of the $1.7 trillion in MBS held at JPMorgan, the New York Fed oversees $2.3 trillion in U.S. Treasury notes and bonds, also purchased under QE programs. Why has it only farmed out the MBS portion to one of the banks it regulates?''