Secret Fed Loans Gave Banks Undisclosed Billions

[Janice]

Secret Fed Loans Gave Banks Undisclosed $13B

The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse.

A fresh narrative of the financial crisis of 2007 to 2009 emerges from 29,000 pages of Fed documents obtained under the Freedom of Information Act >>> details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger. >>>

$7.77 Trillion

The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.” It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.

“TARP at least had some strings attached,” says Brad Miller, a North Carolina Democrat on the House Financial Services Committee, referring to the program’s executive-pay ceiling. “With the Fed programs, there was nothing.” >>>

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OWS protesters are all "wee-wee'd up" at big banks and big business while the biggest "banker" is in the White House. So he gets their support as he bankrolls the banks of the world in order to bring our financial system to collapse as quickly as he possibly can.

And the liberal media yawns ...

[Elspeth]

I love the first sentence of the article: Banks worldwide earned an estimated 13 billion by taking advantage of below-market rates...

Earned? Really?

How about sucked up taxpayer money that is more than either the entire yearly US budget OR total yearly GDP of the US?

The Fed is a private cartel.

[Apocalypse]

..Just exactly how big was the Federal Reserve’s bailout of the banks between the years of 2008 and 2010? Thanks to a Federal Request of Information Act gone fulfilled, America now knows the truth behind a colossal cover-up: almost $8 trillion...

....By March of 2009, the Fed had already dished out $7.77 trillion to save the US financial system, dwarfing other assistance programs several times over. As the financial sector was on the brink of collapse, neither the Fed nor the banks involved came clean with the truth, instead lying through their teeth to keep the total facts a mystery. Until now.

While the banks kept the bailout a secret from Congress, they lobbied to the Legislative Branch to imply more lax governmental regulations on the industry, something that would haven arguably been near impossible had the truth surfaced at the time.



The website Naked Capitalism explains it pretty clearly in not so many words: “The bottom line is everybody close to the process lied like crazy.”...

http://rt.com/usa/news/fed-trillion-reserve-bailout-401


Show this to the DUmmies.

[Wei Wu Wei]

OWS protesters are all "wee-wee'd up" at big banks and big business while the biggest "banker" is in the White House. So he gets their support as he bankrolls the banks of the world in order to bring our financial system to collapse as quickly as he possibly can.

And the liberal media yawns ...

The issue that many OWS protesters have (as well as myself) isn't simply the existence of big banks or big business, but the marriage between big banks/business and the political system.

The fact that the White House works for these people is precisely the problem, but that's not a problem that's going to be solved by voting for team R or team D to sit in that seat, the problem is systemic, it's this unholy marriage itself that erodes our society.

Some OWS protesters aren't as vocal in their criticisms of the Democrats and Obama, but they should be. Other protesters are plenty vocal about it.

[Nubs]

If 1.2 trillion saved or created 2 million jobs, WTF did 7.7 trillion get us???

[Ranger Rick]

The fact that the White House works for these people is precisely the problem, but that's not a problem that's going to be solved by voting for team R or team D to sit in that seat, the problem is systemic, it's this unholy marriage itself that erodes our society.

So I as a Tea Party member, I can expect your support. Donations, votes for your local Tea Party members, etc.

Just doing my part to GOTV.