Fed handed out $1.2 Trillion in secret loans

[Jack_Black]

http://www.bloomberg.com/video/74246...IP0yPylTZExZ-o

The Federal Reserve's unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

And this is on top of TARP??!?!

[aslan]

Originally Posted by Jack_Black

http://www.bloomberg.com/video/74246...IP0yPylTZExZ-o

The Federal Reserve's unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

And this is on top of TARP??!?!

I think what they mean by secret is that the provision of TARP was not to reveal how the loaned money was being used.

[Jack_Black]

They made mention of TARP in the video? TARP is separate from these secret loans.

[zengrifter]

A. The number was actually MUCH higher: $19 Trillion.
B. $30 Billion in Tarp intended for distressed homeowners facing foreclosure has been re-directed for government debt.

[aslan]

Originally Posted by Jack_Black

They made mention of TARP in the video? TARP is separate from these secret loans.

Yikes! You're right. I never heard of this before. So the only reason that TARP was even brought to our attention was the fact that they couldn't loan them that much money all at once on short notice I suppose. Can we ever trust the Fed again? Did our government know this was going on? Why isn't this now publicized all over the place?

[aslan]

Originally Posted by zengrifter

A. The number was actually MUCH higher: $19 Trillion.
B. $30 Billion in Tarp intended for distressed homeowners facing foreclosure has been re-directed for government debt.

Citations ZG.

[zengrifter]

Originally Posted by zengrifter

A. The number was actually MUCH higher: $19 Trillion.
B. $30 Billion in Tarp intended for distressed homeowners facing foreclosure has been re-directed for government debt.

Originally Posted by aslan

Citations ZG.

As always, citations are at Zzone >>

$16 Trillion Secret Bailouts Revealed in Fed Audit

GOP Congress Redirects $30 Billion For Struggling Homeowners To Pay Debt

[aslan]

Originally Posted by zengrifter

As always, citations are at Zzone >>

$16 Trillion Secret Bailouts Revealed in Fed Audit

GOP Congress Redirects $30 Billion For Struggling Homeowners To Pay Debt

Technically,can the Federal Reserve actually lend out money in the name of the US Government, since it is not technically a US agency?

When the Fed "prints money," doesn't it at the same time buy US securities with that money as a quid pro quo? If so, then the $16 trillion should be included in the US Debt numbers (as money borrowed from itself)?

These maneuverings are difficult to follow unless you're an insider.

[QFIT]

If you loan money to someone else, that is their debt, not yours. It is your asset.

[aslan]

Originally Posted by QFIT

If you loan money to someone else, that is their debt, not yours. It is your asset.

But if in the course of printing money the Fed is required to offset it with US securities, that would be money the government borrows from itself. Forgive my stupidity, but I thought all currency required at least prime commercial paper or government securities to back it up since we left the gold standard.