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Lamplighter · 12-02-2011, 09:46 AM

The headlines in the above link may appear to be at odds with the actual article below.
The former is the ($7.77 trillion) amount the Fed loaned to banks at 0.01 % interest.
The latter is the ($13 billion) profits the banks made using those funds
to buy US Treasury bonds at market rate of 3+ % interest.

If you care anything about what went on at the end of 2008 with
Treasury Secretary Paulson, the buy-outs of the banks, and the
role of Congress in all this, do read this article

Bloomberg
Bob Ivry, Bradley Keoun and Phil Kuntz
Nov 27, 2011

Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress
The size of the bailout came to light after Bloomberg LP, the parent of Bloomberg News,
won a court case against the Fed and a group of the biggest U.S. banks
called Clearing House Association LLC to force lending details into the open.

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.

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.

12-02-2011, 09:46 AM	#5
Lamplighter Person who doesn't update the user title Join Date: Jun 2010 Location: Bottom lands of the Missoula floods Posts: 6,402	The headlines in the above link may appear to be at odds with the actual article below. The former is the ($7.77 trillion) amount the Fed loaned to banks at 0.01 % interest. The latter is the ($13 billion) profits the banks made using those funds to buy US Treasury bonds at market rate of 3+ % interest. If you care anything about what went on at the end of 2008 with Treasury Secretary Paulson, the buy-outs of the banks, and the role of Congress in all this, do read this article Bloomberg Bob Ivry, Bradley Keoun and Phil Kuntz Nov 27, 2011 Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress The size of the bailout came to light after Bloomberg LP, the parent of Bloomberg News, won a court case against the Fed and a group of the biggest U.S. banks called Clearing House Association LLC to force lending details into the open. 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. 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.