Trajan
conscientia mille testes
there are several things very wrong here.
First- why are we just now discovering the depth of the issue?
Second- why did the entities on the receiving end of this massive largess not make it know to what extent they were being given succor by the gov., some of these co's have media interests.
Third-, this is not gov.'s place. This is FARRRR beyond what we had been told and what our expectations for future bailouts have been set up as.
Forth -The gov.should not be in the job of picking winners and losers, it distorts the market, blows away and up expectations of investors and frankly at the end of the day if some co.has based their entire life/ability to operate a few quarters sans commercial paper,oh well, their bus. model stinks and to bad for them.
and I won't even go into the foreign banking interest loans etc...I am sure others will get into that.
So here we are; Verizon cannot go under becasue they are to "big to fail"? Or Harley Davidson?...dude, Toyota?... ..really?
By Jia Lynn Yang, Neil Irwin and David S. Hilzenrath
Washington Post Staff Writers
Thursday, December 2, 2010; 12:15 AM
The financial crisis stretched even farther across the economy than many had realized, as new disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to motorcycle makers, telecom firms and foreign-owned banks in 2008 and 2009.
The Fed's efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans.
The biggest users of the Fed lending programs were some of the world's largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain's Barclays, according to more than 21,000 loan records released Wednesday under new financial regulatory legislation.
snip-
"The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. "Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions."
snip-
By the fall of 2008, credit had frozen across the financial system, including the commercial paper market. The Fed then purchased commercial paper issued by GE 12 times for a total of $16 billion. It bought paper from Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued by Verizon twice, totaling $1.5 billion.
snip
heres a whopper-
The data also demonstrate how the Fed, in its scramble to keep the financial system afloat, eventually lowered its standards for the kind of collateral it allowed participating banks to post. From Citigroup, for instance, it accepted $156 million in triple-C collateral or lower - grades that indicate that the assets carried the greatest risk of default.
rest at-
Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms
First- why are we just now discovering the depth of the issue?
Second- why did the entities on the receiving end of this massive largess not make it know to what extent they were being given succor by the gov., some of these co's have media interests.
Third-, this is not gov.'s place. This is FARRRR beyond what we had been told and what our expectations for future bailouts have been set up as.
Forth -The gov.should not be in the job of picking winners and losers, it distorts the market, blows away and up expectations of investors and frankly at the end of the day if some co.has based their entire life/ability to operate a few quarters sans commercial paper,oh well, their bus. model stinks and to bad for them.
and I won't even go into the foreign banking interest loans etc...I am sure others will get into that.
So here we are; Verizon cannot go under becasue they are to "big to fail"? Or Harley Davidson?...dude, Toyota?... ..really?
By Jia Lynn Yang, Neil Irwin and David S. Hilzenrath
Washington Post Staff Writers
Thursday, December 2, 2010; 12:15 AM
The financial crisis stretched even farther across the economy than many had realized, as new disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to motorcycle makers, telecom firms and foreign-owned banks in 2008 and 2009.
The Fed's efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans.
The biggest users of the Fed lending programs were some of the world's largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain's Barclays, according to more than 21,000 loan records released Wednesday under new financial regulatory legislation.
snip-
"The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. "Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions."
snip-
By the fall of 2008, credit had frozen across the financial system, including the commercial paper market. The Fed then purchased commercial paper issued by GE 12 times for a total of $16 billion. It bought paper from Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued by Verizon twice, totaling $1.5 billion.
snip
heres a whopper-
The data also demonstrate how the Fed, in its scramble to keep the financial system afloat, eventually lowered its standards for the kind of collateral it allowed participating banks to post. From Citigroup, for instance, it accepted $156 million in triple-C collateral or lower - grades that indicate that the assets carried the greatest risk of default.
rest at-
Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms
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