A Glitch At The NY Fed Completely Messed Up A Treasury Bill Order For Goldman Sachs
The Financial Times reports that a clerical error at the Fed left Goldman Sachs without any of the three-month Treasury bills it ordered at a government debt auction.
According to the report, a computer bug at the New York Fed meant an actual human being had to manually record treasury orders.
That Treasury official, the FT reports, gave Goldman more six-month bills than it had ordered but none of the three-month bills. From the FT:
As a result of the over-allotment of the six-month bills, Goldman went over the 35 per cent Treasury limit that a bidder can acquire in an auction. The Treasury waived that rule while letting the results of the auction stand, and there will likely be no additional remedies for the bank, a person familiar with the matter said.
Keep the change, Goldman!
The Fed has had four glitch-free debt auctions since the incident.