Federal Reserve Releases Massive Amount of Bailout Data

Federal Reserve Releases Massive Amount of Bailout DataThe Federal Reserve on Wednesday released detailed information about the steps it undertook to stabilize financial markets during the financial crisis as they faced their worst downturn since the Great Depression.

According to a statement on the central bank's website, the disclosures cover more than 21,000 individual transactions done to "restore the flow of credit to American families and businesses, and support economic recovery and job creation in the aftermath of the crisis."

The Fed, which is facing increasing criticism from Republicans and the Tea Party faction, defended these actions, arguing that it followed sound risk-management practices, incurred no losses on the programs that have been wound down and doesn't expect to lose money on those that are still under way.

Among the highlights:
  • The Fed acquired $1.25 trillion in mortgage-backed securities between January 2009 and March 2010.
  • In 2008, the Fed authorized a $12.9 billion bridge loan to Bear Sterns that was repaid in full. It wasn't enough. JPMorgan Chase (JPM) emerged as the only viable bidder to buy the failing firm. To facilitate the transaction, the Federal Reserve Bank of New York created a limited liability company called Maiden Lane and lent that entity $29 billion. JPMorgan lent $1 billion to Maiden Lane.
  • Citigroup (C) did not receive any funding under an agreement to provide "certain loss protections and liquidity supports. . .with respect to a designated pool of $301 billion of assets."
Fed officials made the data public -- the largest such release in the history of the central bank -- to comply with the Dodd-Frank financial regulation law passed in July. Sen. Bernie Sanders (I-Vt.) was instrumental in getting the document-release provision written into law. The Government Accountability Office also is conducting an audit of the Fed's actions during the financial crisis, which Sanders also pushed for over the objections of Fed Chairman Ben Bernanke.

In a statement in May on the Senate floor quoted by The Wall Street Journal, Sanders explained: "This $2 trillion. . .does not belong to the Fed. It belongs to the American people, and the American people have a right to know where trillions of dollars of their taxpayer dollars are going."


Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Add a Comment

*0 / 3000 Character Maximum

77 Comments

Filter by:
BHarrison2

Basically what has occured has been that the PRIVATELY OWNED "Federal Reserve Bank", which functions as a quai-"natinal bank" for the USA, in conjunction with other financial institutions and the Wall Street "insiders", orchetrated the largest complex Ponzi scheme in the history of the world. As this coplex, and somewhat disjointed array set of Ponzi schemes beghan to unravel, "the Fed" has orchestrated and manipulated all sorts of "TARP" programs to shuffle monies around to try to prevent the collapse of these global Ponzi schemes . . . . this includes this previous UNDISCLOSED "privvate "TARP", then the $850 BILLION "publicly financed TARP", and most recently the Fed'splan to "just print $600 BILLION" dollars to further prop up the financial industry. This is like pouring money into a bottomless pit. Almost every action that the Fed takes further undermines the integrity of our economy and is in no way addressing the problems of massive unemployment Things are bound to continue to worsen. Meanwhile, all of the actions of the PRIVATELY OWNED "Federal Reserve Bank are geared to prop up the financial institutions of the wealthy and the ultra wealthy. It is the stockholders and the American consumers and tax payers who are being made to absorb the fraudulent losses. We are already in a "class warfare"; but 99% or more of the American people are so deluded by the goverment propaganda that they do not realize what is really going on. Thewealthy and ultra wealthy special interests groups control our financial instituions and our government, esp. Congress.

December 03 2010 at 12:52 AM Report abuse +1 rate up rate down Reply
dtee8826

WE CAN SAY ALL WE WANT TO SAY ABOUT THESE PEOPLE, BUT DO YOU GUYS THINK THEY REALLY CARE? THEY ARE LAUGHING TO US ON THEIR WAY TO BUY THEIR MILLION DOLLAR HOUSES AND TOYS. RECEIVING MILLIONS IN BONUSES. I WONDER IF FEDERAL RESERVE BANK WOULD LEND ME A LOAN FOR $198,000.00 WITH LOW INTEREST TO PAY OFF MY MORTGAGE LOAN???

December 03 2010 at 12:45 AM Report abuse +1 rate up rate down Reply
dsfsdsf3

I cannot wait until wiiki leaks tells all about our generous bankers.nothing more than liars and thieves.

December 02 2010 at 10:49 PM Report abuse +2 rate up rate down Reply
dstone1683

A basic question: Where did the PRIVATELY OWNWS "Federal Reserve Bank", acting as a quasi-"national bank", actually "get" the $2 TRILLION in U.S. Dollars for thei "private TARP 'program'"??? Is it similar to the recent disclosure that the PRIVATELELY OWNER "fed" was going to "just print" $600 BILLION in currency (out of thin air", nothing of value) to buy U.S. Treasury bonds? What type of Voodoo economics is this? Did "the Fed" just print money for ANY of this $2 TRILLION in "[honey mney"??? The GREATEST "ENEMY" to the American people and our nation is the corruption in the PRIVATELY OWNED "Federal Reserve Bank, which is NOT "ownexd" OR controlled by our Federal government. The disturbing issue is that it seems that almost EVERYONE . . . the media, and esp. Congressmen are too intimidated to even ask the "right questions".

December 02 2010 at 4:43 PM Report abuse +4 rate up rate down Reply
zeroagenow

AND REPUBLICANS WANT TO KEEP REWARDING THE WEALTHY FOR FAILURES? IF WE TAX EVERYONE THE SAME PERCENTAGE THE WEALTHY WILL HAVE TO MAKE UP THE DIFFERENCE BY STARTING BUSINESSES HERE AND THAT MEANS MORE JOBS HERE. DO NOT PAY THEM TO SEND JOBS TO CHINA!

December 02 2010 at 3:35 PM Report abuse +2 rate up rate down Reply
officenteriors

What happened to helping Main Street instead of Wall Street and the Banks? What Bulls---t. The minimum wage for jobs is so rediculus. People cant wipe their butts with that wage. What a joke this government has become, and what are we doing about it........Nothing but complaining to each other. Vote them all out and get some new, not millionaire blood in the Whitehouse and Congress. Change the law so that Congress can only have 2 4 year terms like the President. Make sure that congress has the same benefits as the rest of us. Shame on the USA People loosing houses, homeless, old folks who cant pay their taxes, where is the natural affection.

December 02 2010 at 2:23 PM Report abuse +4 rate up rate down Reply
1 reply to officenteriors's comment
dterraman

what government, we live on a federal reserve plantation

December 02 2010 at 3:56 PM Report abuse +4 rate up rate down Reply
John/Julia

I cannot wait until wiiki leaks tells all about our generous bankers.nothing more than liars and thieves. the dam is broken let the truth come out. only those with something to hide want to shut down the leaks.

December 02 2010 at 10:50 AM Report abuse +8 rate up rate down Reply
3 replies to John/Julia's comment
hjc@aol.it

The banks exposed to mortgage derivatives should have been allowed to go bankrupt! There will be no good lesson learned by letting these institutions recover from such risky investments. This problem will happen again. The funding provided by the goverment should go to new types of banks like the micro-financing in India. There is not enough risk capital available for small business in the US and Europe. Banks will only lend to companies with good credit. The job situation is caused by not enough small business startups. Until this is solved the capitalist system itself is vulnerable, and we will see China move forward.

December 02 2010 at 10:27 AM Report abuse +10 rate up rate down Reply
mattsbenefits

As I watch and experience the credit situation, I come to the conclusion that this has only benefited the wealthy. It has helped the banks rebound and make themselves profitable again. The very people who made bad choices which caused this mess, didn't have any ramifications reguarding their actions. They keep their salaries, and gave themselves very nice bonuses even though they were a main factor in the financial meltdown. I tried to take advantage of the very low interest rates, but found it very difficult in the process. How is this helping the average american? They put the carrot out there, then come back and say they can't do the low interest rate, but will offer you a higher rate, with more closing cost. The american public is being duped! The wealthy are getting wealthier.

December 02 2010 at 9:37 AM Report abuse +11 rate up rate down Reply
mornewz

Replace "In God We Trust" with "In Bernanke We Trust?"

December 02 2010 at 9:06 AM Report abuse rate up rate down Reply
1 reply to mornewz's comment
jkennedy806

Have you looked at the new penny yet, they removed In God we Trust - and right now about the only entity I trust is GOD. I certainly don't trust bernanke, Eric HOlder, Tim Geithner and whole host of others that frauded the American people. As for the banksters, they make organized crime look like a cake walk. Where is Sen. MacCarthy ??? And where is Woodward and Bernstein of the Washington Post? We need some real investigative reporting to uncover the mess this country is in.

December 02 2010 at 10:47 AM Report abuse +2 rate up rate down Reply