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Originally Posted by classicman
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“Much of what the Fed, the Treasury and other agencies did in these transactions remains shrouded in secrecy,” said Representative Edolphus Towns, Democrat of New York and chairman of the oversight committee, said in his opening statement. “It’s time to yank the shroud off the Fed and shine some light on these events.”
Unhappy about the huge bank bailouts that the Fed arranged with the Treasury Department during the Bush administration, many Republicans are even more displeased that Mr. Bernanke is now working hand-in-glove with the Obama administration.
other e-mail between Fed officials shows that Bank of America executives were pressuring the Fed and the Treasury up to the last minute on Dec. 30, when the deal was scheduled to close, to provide written promises that the government would provide billions in new capital and other protection.
Wow - interesting stuff.
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Did you watch any of the hearings about this stuff? Apparently the reason WHY Paulson was pushing for the deal to go through is because of what happened after Lehman Bros was allowed to fail. Do you
remember what happened after Lehman failed? They really thought if Merril failed as well, the economy would have gone off the deep end, like,
for real. We would be in another great depression, like during the 30s. In fact, in a documentary I watched recently (I believe it was on Frontline), Paulson was shocked at how fast things spiralled out of control, because originally he had gotten all the biggest CEOs in a room together and told them to work it out, that they would get no government help. That all changed after what happened with Lehman Bros.
*edit* here is the link...
http://www.pbs.org/wgbh/pages/frontl...eakingthebank/