Secret Fed Loans Helped Banks Net $13 Billion
By Bob Ivry, Bradley Keoun and Phil Kuntz – Nov 27, 2011 7:01 PM ET
Bloomberg Markets Magazine
*** begin quote ***
Nov. 28 (Bloomberg) — Bloomberg Markets magazine’s January issue examines how the Federal Reserve and big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. And how bankers failed to mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. (Source: Bloomberg)
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
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.
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.
*** end quote ***
Clearly, “We, The Sheeple” have no idea how badly they are being screwed!
Ron Paul’s demand to audit the Fed is the first step to cleaning the stable.
Naturally the crony capitalists don’t want their perfidy to be exposed.
“Central Banking” has long be criticized as a banking cartel that’s run, like OPEC is for the oil producers, for the benefit of the bankers.
It’ll take some smart thinking to unwind this disaster. We have to begin with the audit. Everyone needs to know how deep a hole we are in. Like the debt, deficit, and out-of-control spending, the journey of trillions of dollars starts with the first step.
After all, what is a “dollar”?
# # # # #