TV News LIES

Thursday, Aug 27th

Last update10:13:53 PM GMT

You are here News Economy Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans

Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans

E-mail Print PDF

Wall Street Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages.

The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money.”

More...


Most Recent Related Stories...


Hill analysts lower 2015 budget deficit forecast to $426B

CBO DirectorCongress' official budget analyst projected Tuesday that this year's federal deficit will drop to $426 billion,...

Stocks Fall Most in 4 Years as China Dread Sinks Global Markets

Stocks fallInvestors are selling the biggest winners of 2015. Companies that have come to be known as...

US stocks pare losses after 1,000-point Dow plunge

Stocks fallU.S. stock markets sank in morning trading Monday in a wave of fear that circled the...

How banks hid billions in trades from US regulators

Gary GenslerThis spring, traders and analysts working deep in the global swaps markets began picking up peculiar...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!