- Jun 5, 2008
- Reaction score
"From late 2007 through mid-2010, Reserve Banks provided more than a trillion dollars in emergency loans to the financial sector to address strains in credit markets and to avert failures of individual institutions believed to be a threat to the stability of the financial system," the audit report states.
"The scale and nature of this assistance amounted to an unprecedented expansion of the Federal Reserve Systems traditional role as lender-of-last-resort to depository institutions," according to the report.
The report notes that all the short-term, emergency loans were repaid, or are expected to be repaid.
The emergency loans included eight broad-based programs, and also provided assistance for certain individual financial institutions. The Fed provided loans to JP Morgan Chase bank to acquire Bear Stearns, a failed investment firm; provided loans to keep American International Group (AIG), a multinational insurance corporation, afloat; extended lending commitments to Bank of America and Citigroup; and purchased risky mortgage-backed securities to get them off private banks books.
Overall, the greatest borrowing was done by a small number of institutions. Over the three years, Citigroup borrowed a total of 2.5 trillion dollars, Morgan Stanley borrowed two trillion; Merrill Lynch, which was acquired by Bank of America, borrowed 1.9 trillion; and Bank of America borrowed 1.3 trillion.
Banks based in counties other than the U.S. also received money from the Fed, including Barclays of the United Kingdom, the Royal Bank of Scotland Group (UK), Deutsche Bank (Germany), UBS (Switzerland), Credit Suisse Group (Switzerland), Bank of Scotland (UK), BNP Paribas (France), Dexia (Belgium), Dresdner Bank (Germany), and Societe General (France).
Since I already know that many of you won't accept data from a site like thisL First Federal Reserve Audit Reveals Trillions in Secret Bailouts | Common Dreams
Here's links galore detailing this same story. Take your pick and choose a source that YOU trust.
Must be nice to be in a position where if you're so over extended that you are techically insolvent, you'll get bailed bout time after time, no questions asked.
Meanwhile, these big banks shinannigans are driving honest BANKS out of business.
Meanwhile the American middle class is being asked to bite the bullet because the Bnaksters fouled things up.
Meanwhile we Americans continue to bicker amongt ourselves while the REAL SOCIAL PARASITES buy yachts and move the ill-got gains offshore.
Wake up folks.