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Secret Fed Loans Gave Banks Undisclosed $13B
Posted By admin On November 28, 2011 @ 7:43 am In Featured Stories,Tile | Comments Disabled
Bob Ivry, Bradley Keoun and Phil Kuntz
Monday, November 28, 2011
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 and central bank records of more than 21,000 transactions. While Fed officials say that almost all of the loans were repaid and there have been no losses, 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.
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URL to article: http://www.prisonplanet.com/secret-fed-loans-gave-banks-undisclosed-13b.html
URLs in this post:
 Bloomberg: http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html
 Toxic Loans Topping 5% May Push 150 Banks to Point of No Return: http://www.prisonplanet.com/toxic-loans-topping-5-may-push-150-banks-to-point-of-no-return.html
 Banks With 20% Unpaid Loans at 18-Year High Amid Recovery Doubt: http://www.prisonplanet.com/banks-with-20-unpaid-loans-at-18-year-high-amid-recovery-doubt.html
 Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak: http://www.prisonplanet.com/foreign-banks-tapped-fed%e2%80%99s-secret-lifeline-most-at-crisis-peak.html
 Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court: http://www.prisonplanet.com/fed-shouldn%e2%80%99t-reveal-crisis-loans-banks-vow-to-tell-high-court.html
 `Shadow’ Lenders’ Emergency Fed Loans Benefited Biggest Banks: http://www.prisonplanet.com/shadow-lenders-emergency-fed-loans-benefited-biggest-banks.html
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