New York Fed Begins Test Of Fixed-rate Reverse Repo Facility

Richard Parrinello, of Brookhaven, New York, kept the snakes in his detached garage, all neatly stacked in containers and at the right temperature, according to Roy Gross, chief of the Suffolk County SPCA. Burmese pythons are illegal in New York, and Parrinello’s were taken from the house to a reptile sanctuary in Massachusetts while the rest of the snakes are still in his garage, according to Jack Krieger, communications director for the Town of Brookhaven on Long Island. Gross said all the snakes appeared to be in good health and there was no animal abuse or neglect. “It was a well-maintained facility, it was very clean and organized, it was a business,” Krieger said. By the numbers: Pets Parrinello kept an online website, “Snakeman’s Exotics,” which advertised a collection of pythons, boa constrictors and hognose snakes available for sale both domestically and internationally. After weeks of investigation into alleged workers compensation fraud, the town of Brookhaven, the U.S. Fish and Wildlife Service, the New York State Department of Environmental Conservation, Suffolk County Police and the SPCA executed a search warrant in Parrinello’s home, where he lives with his wife and 10-year-old son, according to a news release from Brookhaven. Undercover investigators spoke to Parrinello, who claimed to have $500,000 in inventory stored on the premises, including snakes, turtles and turtle eggs, the news release said. Authorities also say they found a few tarantulas and a couple of freezers with frozen mice and alligator carcasses. Krieger said Parrinello wasn’t arrested or charged with any criminal activity, but he was running a business out of his residence in a residential area, which is a violation of the town code. Town Law Department officials are still investigating and will likely issue numerous violations in the coming days.

The tests, which are temporary open market operations, may extend through Jan. 29, the New York Fed said in a statement on Sept. 20. Fed staff members presented officials the possibility of the facility at the Federal Open Market Committees meeting in July. The system would allow the central bank to offer an overnight, risk-free instrument to a wide range of market participants, and possibly improve its ability to keep short-term rates at desired levels, minutes from the gathering showed. Fed policy makers, while still buying bonds to support the economy, have also been developing methods to eventually help withdraw record monetary accommodation. Along with raising the overnight bank lending rate, Fed officials have said they may use tools including reverse repos to withdraw or neutralize cash in the banking system. In a reverse repo, the Fed lends securities for a set period, temporarily draining cash from the banking system. At maturity, the securities are returned to the Fed, and the cash to its counterparties. To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net More News: