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Secrets of the Bailout, Now Told

whysoserious

whysoserious

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Secrets of the Bailout, Now Told

I haven't seen any threads on this and it seems like big news to me, so I figured I'd start one.

Among all the rescue programs set up by the Fed, $7.77 trillion in commitments were outstanding as of March 2009, Bloomberg said.
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I am having trouble quoting from this article, but I'll ad more in a minute.
 
By the way, off of the loans which were given at next to zero interest:

Fed Loaned Banks Trillions in Bailout, Bloomberg Reports
“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,” Bloomberg reported today. ”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.”
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What the hell is the Fed doing? I want a below-market rate for my home loan, ok Fed? kthxbai
 
Considering the Fed is only allowed to loan money to other Banks, it would be rather hard to get a loan from them.

The Fed's loans, which are extremely short term, are off the books. If it was known in 2008 that the Fed was churning out trillions of short term loans every few days, I suspect that the whole banking system itself would have collapsed(bank runs).
 
This isn't exactly new. Most of this stuff has been discussed over and over. The exact numbers are starting to trickle out but let me start here.

During the first three months of 2009, for example, when Citigroup’s Fed borrowing apparently peaked, Vikram Pandit, its chief executive, hailed the company’s performance. Calling that first quarter the best over all since 2007, Mr. Pandit said the results showed “the strength of Citi’s franchise.”

Citi’s earnings release didn’t detail its large Fed borrowings; neither did its filing for the first quarter of 2009 with the Securities and Exchange Commission. Other banks kept silent on these activities or mentioned them in passing with few specifics.


Sarbanes/Oxley? Where is the government in enforcing it's regulations? Oh yeah, they are encouraging the banks pulling to wool over the eyes of their investors to indeed not divulge this information.

This is why it is not the fault of the banks or the government alone but both of them. It should be noted again that not only did they get this money for nothing, the Fed then paid the banks interest on the money while it was not being used. So we actually paid the banks to take this money.
 
How much of these loans have been paid back? Will the government ever get paid back? So what is this article telling us? We already knew a bunch of banks got bailed out. I have such a small attention span when it comes to reading financial news and analysis.
 
jambalaya said:
How much of these loans have been paid back? Will the government ever get paid back? So what is this article telling us? We already knew a bunch of banks got bailed out. I have such a small attention span when it comes to reading financial news and analysis.
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They claim it's all been paid back, I'm saying no way. Even if you believe it was, we are not getting back the money we gave them to take our money. Wouldn't we all love to be able to borrow $5 billion at 0%, put it back in the banks and get paid 3% on that money?
 
1Perry said:
They claim it's all been paid back, I'm saying no way. Even if you believe it was, we are not getting back the money we gave them to take our money. Wouldn't we all love to be able to borrow $5 billion at 0%, put it back in the banks and get paid 3% on that money?
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Fed short-term loans last 24-48 hours.
 
Samhain said:
Fed short-term loans last 24-48 hours.
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Are you saying that what I described did not happen?

Pages 133 & 137 - Some of these "broad-based emergency program" loans were long-term, and some were short-term. But the "term-adjusted borrowing" was equivalent to a total of $1,139,000,000,000 more than one year. That's more than $1 trillion out the door. Lending for these programs in fact peaked at more than $1 trillion.

http://www.huffingtonpost.com/rep-alan-grayson/the-fed-bailouts-money-fo_b_1129988.html

Page 4 - You also may have heard somewhere that all this money was paid back. Not true. The GAO lists five Fed bailout programs that still have amounts outstanding, including $909,000,000,000 (just under a trillion dollars) for the Fed's Agency Mortgage-Backed Securities Purchase Program alone. That's almost $3,000 for every American.
 
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1Perry said:
They claim it's all been paid back, I'm saying no way. Even if you believe it was, we are not getting back the money we gave them to take our money. Wouldn't we all love to be able to borrow $5 billion at 0%, put it back in the banks and get paid 3% on that money?
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Sure, I'd like that. Heck, I'd settle for just 1 billion. I'm not unreasonable.
 
jambalaya said:
How much of these loans have been paid back? Will the government ever get paid back? So what is this article telling us? We already knew a bunch of banks got bailed out. I have such a small attention span when it comes to reading financial news and analysis.
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Remember Occupy Wall Street? This was the point they were trying to make before the homeless people took over. :)

We, the public, loaned the banks trillions of dollars at almost no interest. The banks then took those near 0% interest loans, and loaned them back to us at interest - netting them around $13 billion straight from our pockets. ****ing a.
 
Thunder said:
err....the Fed only has around $4 trillion assets. How did they lend $7 trillion???
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I don't think anybody knows. At this point they're all just making ****ing numbers up.
 
Deuce said:
I don't think anybody knows. At this point they're all just making ****ing numbers up.
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Pretty good arguement for a full audit.
 
1Perry said:
Sarbanes/Oxley? Where is the government in enforcing it's regulations? Oh yeah, they are encouraging the banks pulling to wool over the eyes of their investors to indeed not divulge this information.

This is why it is not the fault of the banks or the government alone but both of them. It should be noted again that not only did they get this money for nothing, the Fed then paid the banks interest on the money while it was not being used. So we actually paid the banks to take this money.
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You're talking about the banks and the government like they're somehow different institutions at this point. They are not. They are now, and have been for a while, a massive conglomerate entity.
 
In Europe the banks help the countries. Here the government helps the banks. I think we have it backwards.
 
Remember Occupy Wall Street? This was the point they were trying to make before the homeless people took over.
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OWS didnt seem to have an organized point.

We, the public, loaned the banks trillions of dollars at almost no interest. The banks then took those near 0% interest loans, and loaned them back to us at interest - netting them around $13 billion straight from our pockets. ****ing a.
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And here lies the problem. The government, banking industry, and big business have got it all twisted and running in circles. They regulate each other and do what they want. All the while scraps trickle down to keep most quiet and calm.
 
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