Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01%
Excerpt: Credit Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Royal Bank of Scotland Group Plc (RBS) each borrowed at least $30 billion in 2008 from a Federal Reserve emergency lending program whose details werent revealed to shareholders, members of Congress or the public. The $80 billion initiative, called single-tranche open- market operations, or ST OMO, made 28-day loans from March through December 2008, a period in which confidence in global credit markets collapsed after the Sept. 15 bankruptcy of Lehman Brothers Holdings Inc. Units of 20 banks were required to bid at auctions for the cash. They paid interest rates as low as 0.01 percent that December, when the Feds main lending facility charged 0.5 percent. This was a pure subsidy, said Robert A. Eisenbeis, former head of research at the Federal Reserve Bank of Atlanta and now chief monetary economist at Sarasota, Florida-based Cumberland Advisors Inc. The Fed hasnt been forthcoming with disclosures overall. Why should this be any different? Read more here: link<http://www.bloomberg.com/news/2011-05-26/fed-gave-banks-crisis-gains-on-secretive-loans-as-low-as-0-01-.html> J - When they call the roll in the Senate, the senators do not know whether to answer present or not guilty. - Theodore Roosevelt What never fails inside the mind of an intellectual never works outside the confines of his head. The worlds stubborn refusal to vindicate the intellectuals theories serves as proof of humanitys irrationality, not his own. Thus, the true believer retrenches rather than rethinks; he launches a war on the world, denying reality because it fails to conform to his theories. If intellectuals are not prepared to reconcile theory and practice, then why do they bother to venture outside the ivory tower or the coffeehouse? Why not stay in the world of abstractions and fantasy? - Daniel ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:338399 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
