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The Federal Reserve gave out $1.2trn in loans to US banks secretly in 2008, Federal documents have revealed.
The money was handed out in December 2008, when banks were still assuring consumers they were healthy, Bloomberg Markets Magazine has claimed.
Banks went on to obtain $13bn in income because of below-market rates, the magazine said.
The secret bailout was far larger than the $700bn Troubled Asset Relief Programme (TARP) set up in October 2008 to bail out Wall Street.
Almost all of the loans have been repaid, but Bloomberg argued the money did not just bail out the banks but help them to grow larger and more successful.
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Are you telling me
That the jolly old Treasury, Bank of England and the Wizards of super financial regulation, have not or will not get up to the same tricks. Corruption has its uses and becomes ligitimate, bepending on how heavy the players are. The problem with the Civil Service paid scales, conflict of interest was ignored and Civil Servant negotiated with civil servant the award, same with banker,doctors,directors and specially pensions. So the same trick are play in many countries, the only thing that changes is the colour of the hat.
Posted by: M J Winfield