Bob Ivry, Bradley Keoun and Phil Kuntz
Bloomberg
November 28, 2011
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.
[Read More]
No comments:
Post a Comment