Secret Fed loans gave banks $13 billion undisclosed to Congress

posted by
November 28, 2011
Business Week    
Posted in News

"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. ... The Fed didn't tell anyone which banks were in trouble so deep they required emergency loans of 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 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 interest rates, Bloomberg Markets magazine reports in its January issue." (11/28/11)

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