Thursday, July 7, 2011

Fed Unveils More Crisis-Loan Details

By Luca Di Leo Of DOW JONES NEWSWIRES



WASHINGTON -(Dow Jones)- Goldman Sachs Group Inc. (GS) took the biggest single sum and was given the best rate on two Federal Reserve loans in December 2008, the latest disclosure of the central bank's controversial actions at the height of the financial crisis showed.

Following a Freedom of Information Act request by Bloomberg News, the Fed Wednesday disclosed the details of 28-day loans made to the biggest Wall Street firms from March to December 2008. This short-term lending to banks, known as single-tranche term repurchase agreements, peaked at $80 billion in April 2008, a month after the collapse of Bear Stearns, which marked the prelude to the crisis.

The overall amounts had been disclosed, but details about individual banks' borrowing had not. The U.S. units of Barclays PLC, BNP Paribas, Credit Suisse Group, Deutsche Bank and Royal Bank of Scotland Group were also among those that took advantage of the low-rate loans.


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2 comments:

  1. That' just smart business - if some dumb SOB is
    willing to loan me billions of dollars at subprime rates - you bet your ass; I'll come up with a story of why I need it.

    Meanwhile; I'll turn the money 5 or 6 times before repayment and make 5% on every turn

    Groovy

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  2. what i feared most. the federation will not include some minorities like blacks and brown folks. well i know many brown faces and I will attest to there smarts. The real people causing problems is rich white folks. not white folks. but rich white folks. now guess what. They want you to think it is the smaller timers to blame. do reading. cause it isnt true people.

    - Sam

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