Read More »"/> Read More »"/> The Fed’s $7.77 Trillion Secret Bailout | MyGovCost | Government Cost Calculator

The Fed’s $7.77 Trillion Secret Bailout


Monday December 5th, 2011   •   Posted by Emily Skarbek at 11:45am PST   •  

As it has come to light, from August 2007 to April of 2010 the Fed loaned out over $7.7 trillion to troubled banks. A Bloomberg report reveals that the U.S. government made these secret bailouts at no interest and then borrowed the money back at interest.

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…

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.

The Bloomberg link includes an interesting info graphic showing the estimated income from Fed loans per bank and what were their net gains / losses.

HT: Jeff Hummel

Featured Image:
© Aleksandr Lobanov | Dreamstime.com



Facebook Twitter Youtube

Search

amazon.com
Support the Independent Institute when you shop on Amazon with the AmazonSmile program. Every time you make a purchase, 0.5% will be donated to Independent on your behalf, at no extra cost to you. Just visit smile.amazon.com, log in using your usual Amazon account details, and select the Independent Institute as your charity.

Archives

December 2011
S M T W T F S
 123
45678910
11121314151617
18192021222324
25262728293031