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Monday, August 22nd, 2011

Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans

Author:     BRADLEY KEOUN and PHIL KUNTZ
Source:     Bloomberg
Publication Date:     Aug 21, 2011 4:01 PM PT
Link: Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans
Stephan:   All of this arose because there was inadequate oversight and proper regulation of these financial entities. And this is still the case, and it is going to happen again. You can also see in this report what liars these institutions were, and how they deceived the public. Now place that in the context of BoA promising to help Governor Perry who is on record as saying he wants a moratorium on any future regulations, and the dismantlement of most of them, and draw your own conclusions.

Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

‘These are all whopping numbers,

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