Tuesday, August 23, 2011

Feds gave $1.2 trillion in secret loan to banks


Source: Press TV
http://www.presstv.ir/usdetail/195207.html

The Federal Reserve gave $1.2 trillion in secret loans to banks during the financial crisis, from August 2007 until April 2010. This is in addition to the TARP bailouts which were publicly known. Economicpopulist.org

The $1.2 trillion peak on Dec. 5, 2008 was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg. Economicpopulist.org

HIGHLIGHTS

The largest borrower was Morgan Stanley, which received as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion. Politico

By comparison, TARP, a $700 billion bank bailout fund that was passed by Congress in late 2008, gave $45 billion each to Citigroup and Bank of America, and only $10 billion to Morgan Stanley. Politico

The Fed also lent heavily to foreign banks that were struggling to fund themselves: Almost half of the Fed's top 30 borrowers, measured by peak balances, were European firms. They included Royal Bank of Scotland, Switzerland's UBS and Belgium's Dexia. Latimesblogs.latimes

A former Justice Department official, Robert Litan who has in the past served on a commission looking at the causes of the Savings and Loan crisis, is quoted by Bloomberg as saying 'These are all whopping numbers. You're talking about the aristocracy of American finance going down the tubes without the federal money.' Economicvoice

FACTS & FIGURES

The money was loaned by the Fed in an attempt to grow the U.S. economy after the crash of 2008. According to Bloomberg research, the $1.2 trillion amounts to more money than all federally insured banks earned in the last decade. Shortnews.com

The Federal Reserve claims that it has not lost money on these emergency loans, and that in fact it has netted $13 billion in interest from these programs from August 2007 through December 2009. Politico

The Fed, under Chairman Ben S. Bernanke, initially refused to disclose which banks had sought financial help during the crisis, asserting that publishing the information could trigger a run on the institutions by branding them as troubled. Latimesblogs.latimes

Bloomberg had filed a Freedom of Information act in 2008 to find out the details on these loans. They finally won to be presented with 21,000 transactions and massive amounts of data to crunch. economicpopulist.org

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab