Tenbatsu
04-04-2010, 06:59 AM
http://www.csmonitor.com/Money/Robert-Reich-s-Blog/2010/0401/Fed-in-hot-water-over-secret-bailouts
FTA:
The Fed has finally came clean. It now admits it bailed out Bear Stearns – taking on tens of billions of dollars of the bank’s bad loans – in order to smooth Bear Stearns’ takeover by JPMorgan Chase. The secret Fed bailout came months before Congress authorized the government to spend up to $700 billion of taxpayer dollars bailing out the banks, even months before Lehman Brothers collapsed. The Fed also took on billions of dollars worth of AIG securities, also before the official government-sanctioned bailout.
I'm surprised at the sudden nature of the Federal Reserve releasing this information. I would expect a major news event to come within the following week to white wash this story. I do not think the Fed would release this information if the media and the people of the U.S. were going to focus on it and perhaps take action against them.
FTA:
The Fed has finally came clean. It now admits it bailed out Bear Stearns – taking on tens of billions of dollars of the bank’s bad loans – in order to smooth Bear Stearns’ takeover by JPMorgan Chase. The secret Fed bailout came months before Congress authorized the government to spend up to $700 billion of taxpayer dollars bailing out the banks, even months before Lehman Brothers collapsed. The Fed also took on billions of dollars worth of AIG securities, also before the official government-sanctioned bailout.
I'm surprised at the sudden nature of the Federal Reserve releasing this information. I would expect a major news event to come within the following week to white wash this story. I do not think the Fed would release this information if the media and the people of the U.S. were going to focus on it and perhaps take action against them.