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WHO IS MORE CORRUPTED, THE AMERICANS & EUROPEANS, OR CHINA ? |
Wall Street Aristocracy Got $1.2 Trillion in Secret Loans
By Bradley Keoun and Phil Kuntz
Aug 22, 2011
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.”
(View the Bloomberg interactive graphic to chart the Fed’s financial bailout.)
“Why in hell does the Federal Reserve seem to be able to find the way to help these entities that are gigantic?” U.S. Representative Walter B. Jones, a Republican from North Carolina, said at a June 1 congressional hearing in Washington on Fed lending disclosure. “They get help when the average businessperson down in eastern North Carolina, and probably across America, they can’t even go to a bank they’ve been banking with for 15 or 20 years and get a loan.”
http://www.bloomberg.com/news/20 ... s-secret-loans.html
Noticias de Hoy • a year ago −
This amounts don't amaze me. For anyone who understands the concept of leverage and how the Federal Reserve "worked" since its foundations, it must be clear that the situation the world is living today as October 2012 , is ought to this practices which the Central European Bank learned so well. This people need to understand that leverage work only on durable goods such as gold and not on printed papers such as bonds and bills that loose value with time. The collapse is near, I'm very sorry to say.