Bloomberg Magazine Report: Fed Secretly Loaned $7.77 Trillion To Biggest, Likely Insolvent Banks

Nothing surprises me anymore, but some things still offend me. Here’s Scarecrow of FDL:

In a monster report for its January issue, Bloomberg Magazine compiled previously secret Fed data on the size and scope of the bank bailouts during 2008-2009.  

Among other things, we learn that the Federal Reserve under Ben Bernanke and Tim Geithner (previously head of the New York Fed) secretly loaned over seven trillions dollars to arguably insolvent banks and financial institutions to keep them afloat, while concealing the scope of the lending from Congress and even member of the Treasury Department charged with allocating TARP bailouts.

Much of this information on the Fed’s lending programs was already known in summary form as a result of the successful “audit the fed” legislation pushed by a coalition that included Firedoglake.  That effort led Bloomberg to further successful Freedom of Information Act requests that retrieved another 29,000 pages of more detailed documents.

The Bloomberg report compiles and analyzes this information to reveal the staggering effort undertaken by the Federal Reserve in 2008-2009, both to keep the financial system, including the nation’s largest banks, from collapsing and to keep the details secret from Congress as it was considering the TARP legislation in 2008 and the financial reform legislation and regulations in 2009-11.

Please read the details; they offend even me. Even Congress was not told. I guess they were not sufficiently bought to have remained quiet about it.

(I would write more, but the WordPress post editor is fucked to the ears this morning, and I’m tired of fighting it. Later!)

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