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The Fed gave banks $1.2 trillion

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The Federal Reserved reached into public funds — about $1.2 trillion — to help bail out banks during the 2008 financial crisis, a new report reveals.

A Freedom of Information Act request put together by Bloomberg has allowed for the hard numbers to finally be made available to the public about the loans the Fed dished out to keep financial firms afloat in the midst of an economic collapse.

The Federal Reserve has refrained from disclosing info on the loans, which began in August 2007, and as one economics professor told Bloomberg, “was supposed to be secret and never revealed.” The Fed argued in court for two years that revealing the names and terms of borrowers and their loans would damage stocks, and some of the biggest banks involved asked the US Supreme Court last year to withhold some of the information. The Fed attested that revealing the secretive loans to the public, or even being disclosed to the Government Accountability Office, would expose the weakness of the American economy. Nonetheless, their appeal was declined and data released, at nearly 30,000 pages, shows 21,000 transactions occurring over the course of three years.

Now, at least, the world knows that long-standing secret that the economy was in trouble.

“These are all whopping numbers,” Robert Litan, a former Justice Department official, tells Bloomberg. “You’re talking about the aristocracy of American finance going down the tubes without the federal money.” Bloomberg notes that $1.2 trillion is also around how much money US homeowners owe on over 6 million delinquent and foreclosed mortgages.

Of the banks involved in the loans, Morgan Stanley was the biggest of borrowers, taking in over $107 billion. Citigroup received $99.5 billion and Bank of America $91.4 billion, reads the report. The Fed says that they suffered no credit losses as part of the program, and actually brought in around $13 billion in interest in fees between August 20007 and December 2008.


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2 Responses to " The Fed gave banks $1.2 trillion "

  1. Jean-Francois Morf says:

    OECD has calculated that the rescue of all banks in 2008 has cost 14 trillion $ to the OECD countries…
    FED central bankers are well known liars!

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  2. Jean-Francois Morf says:

    1) Parents said to their spoiled children: never play liar poker, or we will punish you!
    2) But the spoiled children played liar poker, and so they loosed everything in 2008!
    3) Instead of a punishment, the spoiled children became 14 trillion $ debt recognition from their parents, but parents ordered to children to never play liar poker again…
    4) Not punished children immediately stopped to obey to any adult parent!
    5) Not punished children immediately played the 14 trillion $ on liar poker again!
    6) Children also created from nothing a quadrillion $ liquidity (google: quadrillion $ derivatives), but this huge liquidity creation NEVER provoked hyper-inflation…
    7) Children sold to speculators cheap CDS: children must now pay back exorbitant!
    8) Children sold to speculators cheap PUT options on children stocks, but children must now pay back PUT options on crashed children stocks to exorbitant prices!
    9) The more the children stocks fall, the more the PUT options on children stocks rises, making children stocks falling faster, making PUT options rising faster…
    10) Children dare insulting their parents (having saved children) for being insolvent!
    11) Children treat parents of PIIGS (it was an ill CALUMNY, but it was a self fulfilling prophecy, ruining more and more all parents, worldwide)
    12) And in 2011, children are now ruined again, because jewish poker players has again be more twisted then the disobedient children poker players!
    13) Multi-billionaires jewish poker players have again the 14 trillion $ into their pocket!
    14) And the parents discuss to recapitalize again the children with a dozen trillions $!
    15) The parents are the governments, and the children are the bankers…

    I said that the ill PIIGS story was an ill CALUMNY?
    i- = Illinois
    CA = California
    LU = Louisiana
    M = Michigan
    N =Nevada
    NY = NewYork
    (It would be an i-CALUMNNY to say that these 6 states are ill PIIGS!

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