Fed made $9 trillion in emergency overnight loans

Fed made $9 trillion in emergency overnight loans

money.cnn.com

The Wall Street firm that received the most assistance was Merrill Lynch, which received $2.1 trillion, spread across 226 loans. The firm did not survive the crisis as an independent company, and was purchased by Bank of America (BAC, Fortune 500) just as Lehman Brothers was failing.

Citigroup (C, Fortune 500), which ended up with a majority of its shares owned by the Treasury Department due to a separate federal bailout, was No. 2 on the list with 279 loans totaling $2 trillion. Morgan Stanley (MS, Fortune 500) was third with $1.9 trillion coming from 212 loans.

(visit the link for the full news article)

How ludicrous is that?

They lent out 9 Trillion dollars of what I would think is tax payer money, on top of what the government provided them.

AND on top of that some of them didn't even make it.

The corporate take over of America was even worse than I thought.

What are your thoughts ATS?

~Keeper

money.cnn.com
(visit the link for the full news article)

The sad fact is that is information from 2008 and it has taken soooo long to publish.......

Smoke and Mirrors and a couple of years anyone ......

This is old news. My dad works for Merril and I remember when he was talking about BOA buying them out.

I'm still trying to figure out why our government is throwing money at everything it can to keep us out of a depression ...the free market system is designed so that when a company fails smaller companies take its place and learn from the mistake of the previous one.

Nobody is going to learn anything when our government keeps bailing everyone out.

reply to post by tothetenthpower

All the loans were backed by collateral and all were paid back with a very low interest rate to the Fed -- an annual rate of between 0.5% to 3.5%.

God, wish I could get money at them interest rates then loan it out to the poor smucks at 5-20% like banks do..
s&f..I just wonder if the Fed is not trying to soften up the sheeple before Ron Paul get a hold of them..
It's unusual for them to share much info...
You also wonder what are the toxic assets thet bought off their mates at 100% of book price..

Hey my idea was this they should of thrown some of that money to us tax payers but in vouchers to save our homes, to pay off our cars, to pay off our student loans, THAT WOULD OF SAVED US FROM ALL THIS #!! THAT WOULD OF SAVED ALL THOSE BUSINESS AND THAT WOULD OF SAVED OUR JOBS!!!

Originally posted by freedish
I'm still trying to figure out why our government is throwing money at everything it can to keep us out of a depression ...

See, that's the part that really makes me feel like spewing up my tuna sandwich . . . the government isn't doing everything t can to keep us out of a depression, they're doing everything they can to make sure their buddies and campaign financiers asses are covered until things turn around. . .

Silly people . . Bailouts are for banks . . . .Unemployed get zilch

As a country, if we go down we should go down togther but apparently that's only how us stupid middle class folks think.

The banks take our money, to loan it back to us and make us pay them for it.
Capitalism is a sham.

Originally posted by tothetenthpower

How ludicrous is that?

They lent out 9 Trillion dollars of what I would think is tax payer money, on top of what the government provided them.

Can it even be considered tax payer money anymore when they just print & print & print as needed??

Wow what the perfect SCAM

Bail out these banks knowing they are still going to fail, but before they fail, the failing banks heads buy assets and other investments in an effort to "hide" the money.

Then when the banks are purchased for pennies on the dollar the money reemerges clean as a whistles and companies like BOA get the money and still look good since they didn't ask for much money in the bailout.

This is the perfect SCAM

Yet Most are to blind to see it.

Oh and those corporate heads of these failing banks somehow end up with a chunk of change in there pockets once all is said and done.

Originally posted by The GUT

Originally posted by tothetenthpower

How ludicrous is that?

They lent out 9 Trillion dollars of what I would think is tax payer money, on top of what the government provided them.

Can it even be considered tax payer money anymore when they just print & print & print as needed??

Oh eventually we'll be paying for it.

Originally posted by The GUT

Originally posted by tothetenthpower

How ludicrous is that?

They lent out 9 Trillion dollars of what I would think is tax payer money, on top of what the government provided them.

Can it even be considered tax payer money anymore when they just print & print & print as needed??

Well it should not be.

However every dollar the FED prints and gives out is a LOAN, the collataral of which is YOU the taxpayer. Anybody with a SSN

~Keeper

Originally posted by tothetenthpower
Can it even be considered tax payer money anymore when they just print & print & print as needed??

Well it should not be.
However every dollar the FED prints and gives out is a LOAN, the collataral of which is YOU the taxpayer. Anybody with a SSN


Well not quite... You all need to spend 45 minutes and watch this series... it explains in an animation EXACTLY how the banking system works... how MONEY is created today. You really need to see this trust me

Money as Debt - The Secret of Money Five parts



As to that 9 Trillion dollar loan in 2008? Well the Federal Reserve doesn't know what they did with it... I have posted this several times, but it seems no one really cares. Just LISTEN to this lady... tell me if you think they have a handle on it

Federal Reserve Lost 9 TRILLION Dollars.

It is now time for Americans to demand that our government take back all the money from the executives of ALL of these corporations. I include all from the past 20 or more years. Take it all back. Leave them with what a normal person would have made or even minimum wage.

They robed us. PERIOD. they got millions while the companies they run were collapsing. It needs to be recovered in full and used to pay our National Dept.

Its also time to prevent future money grabs like those given to top executives. They obviously dint earn their keep. In fact I don't see how anyone could REALLY earn millions in bonus while the rest of the hard working public makes due on minimum wage.

Screw Capitalism. I did not say screw democracy or freedom btw. there not the same.

Originally posted by GoalPoster

Originally posted by freedish
I'm still trying to figure out why our government is throwing money at everything it can to keep us out of a depression ...

See, that's the part that really makes me feel like spewing up my tuna sandwich . . . the government isn't doing everything t can to keep us out of a depression, they're doing everything they can to make sure their buddies and campaign financiers asses are covered until things turn around. . .

Silly people . . Bailouts are for banks . . . .Unemployed get zilch

As a country, if we go down we should go down togther but apparently that's only how us stupid middle class folks think.

Sadly, I think the government under the obama admin really does think they're helping. Their intentions are good but they are hopelessly misguided. More than Bush. They are so arrogant and in denial about how to fix the problem. Like they REALLY believe in global warming and taxing the rich, and gov run healthcare and bailing out banks. Its pretty sad. Well its just socialism. Government is not the solution, government is the problem.

reply to post by tothetenthpower

What are your thoughts ATS?

I am STILL trying to get my head around these thoughts:

First bankers create a loan out from "pixie dust" not wealth.

First National Bank of Montgomery vs. Daly (1969)

Mr. Morgan, the bank's president, took the stand. To everyone's surprise, Morgan admitted that the bank routinely created money "out of thin air" for its loans, and that this was standard banking practice. "It sounds like fraud to me," intoned Presiding Justice Martin Mahoney amid nods from the jurors. In his court memorandum, Justice Mahoney stated:

Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, . . . did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.

The court rejected the bank's claim for foreclosure, and the defendant kept his house....
www.webofdebt.com...

US Banks Operating Without Reserve Requirements
... In summary, today most depository institutions are satisfying their entire reserve requirement with this vault cash, which they hold to meet the liquidity needs of their customers and would hold even in the absence of reserve requirements. For these institutions, reserve requirements are effectively non-existent.... www.marketskeptics.com...

Money is Created by Banks: Evidence Given by Graham Towers
freedomprime.blogspot.com...

Some of the most frank evidence on banking practices was given by Graham F. Towers, Governor of the Central Bank of Canada (from 1934 to 1955), before the Canadian Government's Committee on Banking and Commerce, in 1939.

Q. But there is no question about it that banks create the medium of exchange?

Mr. Towers: That is right. That is what they are for... That is the Banking business, just in the same way that a steel plant makes steel. (p. 287) The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. (pp. 76 and 238) Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money. (pp. 113 and 238) Broadly speaking, all new money comes out of a Bank in the form of loans. As loans are debts, then under the present system all money is debt. (p. 459)

So if the banks are creating the money out of thin air, how in Hades can they go bankrupt! How can ANYONE go bankrupt peddling counterfeit loans??? It is 100% profit minus operating costs. Most companies are lucky to get 5% to 10% profit!!!


Yes I do understand AIG, (may they rot forever in jail)

CDS is a fancy type of gambling where someone can bet whether or not MY mortgage will go into foreclosure. Since there are no limits to the number of CDS on a mortgage and anyone who knew the game can play, there is real pressure to cause a mortgage to default. This is because a $100,000 mortgage can be worth $1,000,000 in CDS to a bank with 10 CDS on my mortgage.

“A credit default swap (CDS) is a credit derivative contract between two counterparties,” says Wikipedia. "The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument defaults. CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the specified events occur...

CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want....
www.realtytrac.com...

MATT TAIBBI: In the Commodity Futures Modernization Act in the year 2000, they specifically exempted credit default swaps from being treated as gaming under any state laws. And they had to do that, because they were afraid that they were going to be regulated by, you know, state gaming agencies. www.democracynow.org...

Senior investors, who are typically financial institutions, own the AAA tranches that are insured against default by AIG, and they WANT to foreclose on the Middle Class so that insurance payments kick in. Conversely, the junior tranche investors want workouts with homeowners because their investment is not insured.
 
“To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?
 
“Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”
www.realtytrac.com...

On top of that is the "Obama administration's Home Affordable Modification Program (HAMP)" It is the government's baited trap to lure unsuspecting home owners into Foreclosure. Believe me I speak from frustrated experience - IT IS A MALICIOUS TRAP! The Obama administration’s mortgage relief plan provided help to only 7% of borrowers who signed up last year "...homeowners and housing counselors say navigating the bureaucratic maze often seems impossible."


My thoughts? The US government gave it to the American people without vasoline... repeatedly.

reply to post by tothetenthpower


Perhaps this is being released now in the wake of Assange's claims of
having the "goods" on a major bank and its imminent release?

They want to get out some of it now, so it is old news and people
don't totally freak out.

Just a theory.

As if anything the Fed or Banks do at this point could shock anyone in America.

Some things in this article confuse me?

Some Wall Street firms disputed the way the Fed reported the numbers. An executive from one of the firms said that many of the overnight loans were rolled over for days at a time, and that each day it was counted as a new loan. "It's being double, triple, quadruple counted in some cases," said the executive.

So how much was it,why the confusion?

Second,why initially bailout or loan to Merrill Lynch then what stop and another recepiant on the loans buy them out? Wasnt Merrill in effect bailedout regardless yet forced to sell at the same time? Is this forced or preferred consolidation?

The Wall Street firm that received the most assistance was Merrill Lynch, which received $2.1 trillion, spread across 226 loans. The firm did not survive the crisis as an independent company, and was purchased by Bank of America (BAC, Fortune 500) just as Lehman Brothers was failing.

Then this,all loans were payed back plus interest. So what was the efffect of this infusion of liquidity on us overall and was this money ever counted as part of our debt?

All the loans were backed by collateral and all were paid back with a very low interest rate to the Fed -- an annual rate of between 0.5% to 3.5%.

If I'm reading this right this was actually a good thing,except for ,"Who makes the decisions on who gets saved and who doesnt?" amirite?

here's the problem with the way our banking system and money system works.

Sure these banks may pay it back, but will at a substantial interest rate, but who are they actually paying back?

The american tax payers? NO!

The United States Government? NO!

The Federal Reserve? YES!

But do the american people own the federal reserve? NO!

The Federal Reserve is a corporation owned and run by large banking institutes for the sole purpose of profit.

Now let's say these banks can't pay the loans off with the high interests, what happens to the banks?

They either cease to exist thus lessening the competition, or Purchased by the very banks that own the federal reserve for penny's on the dollar.

Either way it's a win win for the banks that own the fed.

Now let's say you have large banks not associated with the FED struggling, the banks that run the fed then claim they need to print more money to help these banks, the banks get loaned the money from the fed. The Fed know's these banks will never be able to pay off the loan and high interest rates, then the banks collapse, and once again giving these banks that run the fed an opportunity to buy up the competition and get the billions of dollars loaned out, plus the interest.

I know this does not make sense, but that is how it works.

Us American tax payers will not see any of the so called money payed back, unless it was from the federal reserve buying bonds from goldman sachs at a high profit for goldman sachs. Even then it is our tax dollars paying the interest on the bonds bought by the fed.

I know it's hard to follow, but that's there goal

It's all "Fairy dust"......

There is no such thing as "money",or "taxpayer money"....

The more they print,or create on a ledger,the less every dime of the whole is worth.

Now go figure out why you can't seem to get by on what you earn.....

Never mind you haven't had a real "COLA",for about 20 years.

Yes Indeed,it is a scam.