April 4, 2011
The chairman of the House subcommittee that oversees the Federal Reserve said he plans to hold hearings in May on disclosures that the Fed made billions — perhaps trillions — in secret emergency loans to almost every major bank in the U.S. and overseas during the financial crisis.
The big loans started in 2007 and were disclosed last week under Freedom of Information Act requests by FOX Business and Bloomberg News after a two-year legal battle by the news organizations with the Fed and big banks.
“I am, even with all my cynicism, still shocked at the amount this is and of course shocked, but not completely surprised, [that] much [of] this money went to help foreign banks,” said Rep. Ron Paul (R-TX), chairman of the House Financial Services subcommittee on domestic monetary policy, in an interview with FOX Business on Friday. “I don’t have [any] plan [for] legislation…It will take awhile to dissect that out, to find out exactly who benefitted and why.”
The Fed declined to comment. But its records show the loans were collateralized in full and have since been repaid.
This article was posted: Monday, April 4, 2011 at 5:10 am