- Oct 7, 2011
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The Federal Reserve doled out a staggering 7.77 trillion dollars in secret loans in an effort to stabilize banks during the financial crisis cheap money from the public purse that the banks subsequently lent out at higher rates for a profit of $13 billion dollars, Bloomberg News reports.
Although Bloomberg has been publishing findings from its analysis of over 29,000 pages of documents since August, the true magnitude of the central banks intervention during the economic crisis has only come to light in recent days.
Add up guarantees and lending limits, the Bloomberg report states, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.
The $7.77 trillion figure is distinct from the money given to banks under the Treasury Departments $700 billion Troubled Asset Relief Program bailout endeavor, which was approved by Congress.
At the time of TARPs passage, members of Congress were unaware of the extent of the Feds behind-the-scenes lending activity.
Read more: Secret Fed Loans | Congress Unaware | TARP Vote | The Daily Caller
Although Bloomberg has been publishing findings from its analysis of over 29,000 pages of documents since August, the true magnitude of the central banks intervention during the economic crisis has only come to light in recent days.
Add up guarantees and lending limits, the Bloomberg report states, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.
The $7.77 trillion figure is distinct from the money given to banks under the Treasury Departments $700 billion Troubled Asset Relief Program bailout endeavor, which was approved by Congress.
At the time of TARPs passage, members of Congress were unaware of the extent of the Feds behind-the-scenes lending activity.
Read more: Secret Fed Loans | Congress Unaware | TARP Vote | The Daily Caller
