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View Full Version : Why The Fed Gave $220 Million In Bailout Money To The Wives Of Two Morgan Stanley "Bigwigs




cubical
04-12-2011, 12:59 PM
http://www.zerohedge.com/article/matt-taibbi-asks-why-fed-gave-220-million-bailout-money-wives-two-morgan-stanley-bigwigs


It's hard to imagine a pair of people you would less want to hand a giant welfare check to — yet that's exactly what the Fed did. Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan's penchant for dabbling in thoroughbred racehorses. But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

Maximus
04-12-2011, 01:37 PM
wow, just wow.

puppetmaster
04-12-2011, 03:50 PM
funny how we aren't marching in the streets by now

Travlyr
04-12-2011, 04:24 PM
Yeah... this debt... it's not my debt. I do not approve or agree to pay for this kind of theft. The taxpayers send what, $2 trillion to the east coast each year, and this is what they do with it!?! I object.

kpitcher
04-13-2011, 03:19 AM
If they wanted a bailout we could have given what, 45,000 per person or some such figure. Heck that would have jumpstarted the economy like crazy - new goods, new businesses, saving houses. Another trillion or so to the debt wouldn't be good but the average person would at least benefit.

Oh silly me, the corporatism and saving the big banking friends wouldn't have happened so that would have been an even dumber idea than TARP.

tsopranos
04-13-2011, 09:40 AM
This government is corrupt to the core. Who the f is going to jail for this?