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Qtec
04-27-2011, 01:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 14pt'>Largest Banks Likely Profited By Borrowing From Federal Reserve, Lending To Federal Government</span>

A newly-released study from the Congressional Research Service bolsters claims that <span style='font-size: 17pt'>the nation's largest banks profited off the Federal Reserve's financial crisis-era programs <u>by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.</u></span>

The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.

The Fed released records under pressure in December and March that showed the extent of its largesse. The CRS study shows for the first time how some of the most sophisticated financial firms could have taken the Fed's money and flipped easy profits simply by lending it back to another arm of the government.

The report was requested by Sen. Bernie Sanders (I-Vt.), who likened the crisis-era emergency loans to "direct corporate welfare to big banks," in a statement. The cash likely was lent back to Uncle Sam in the form of Treasuries and other debt "instead of using the Fed loans to reinvest in the economy," Sanders added.

In all, more than $3 trillion was lent to financial institutions from the Fed, and terms were generous. Junk-rated securities were pledged as collateral for taxpayer-backed loans. The Fed did not provide conditions for how the money was to be used.

As part of one Fed program, on 33 separate occasions, nine firms were able to borrow between $5.2 billion and $6.2 billion in U.S. government securities for four-week intervals, paying one-time fees that amounted to the minuscule rate of 0.0078 percent.

<span style="color: #3333FF">In another, financial firms pledged more than $1.3 trillion in junk-rated securities to the Fed for cheap overnight loans. The rates were as low as 0.5 percent.
During one three-month period in 2009, Bank of America borrowed more than $48 billion at rates ranging from 0.25 to 0.5 percent. Meanwhile, the largest U.S. lender tripled its holdings of Treasuries and other taxpayer-backed debt to about $15 billion -- securities that yielded 3.5 percent.</span>

During the third quarter of 2009, the bank borrowed $2.9 billion from the Fed through a program that charged 0.25 percent interest. In that same period, Bank of America increased its holdings of taxpayer-backed federal debt by $12 billion, according to the Congressional Research Service. Those securities yielded an average of 3.2 percent.


..In contrast, during the first year of the Obama administration, small businesses shuttered due to lackluster sales and a lack of credit, foreclosures surged, and credit contracted at one of the quickest rates on record.

"Why wasn't the Fed providing these same sweetheart deals to the American people?" asked Warren Gunnels, senior policy adviser to Sanders. <span style='font-size: 17pt'>"The Fed was practicing <u>socialism for the rich,</u> powerful and the connected, while the federal government was promoting rugged individualism to everyone else."</span> </div></div>

Q

link (http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html)

LWW
04-27-2011, 03:13 AM
How do you get it without ever actually getting it?

Socialism ... communism ... fascism ... monarchism ... all are forms of oligarchy and all are forms of statism that exists for the sole purpose of enriching the elite.

The only form of government that actually works for the rights of all is a constitutional republic, and even then only when properly constructed, such as ours.

Yet, the moonbat crazy left struggles mightily to destroy the only instrument which guarantees the rights of all citizens.

Lenin called the western left useful idiots.

Qtec
04-27-2011, 06:15 AM
So, no comment on the topic then?

Q

pooltchr
04-27-2011, 06:38 AM
And all of this happened during which administration?????????


Steve

Gayle in MD
04-27-2011, 07:09 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 14pt'>Largest Banks Likely Profited By Borrowing From Federal Reserve, Lending To Federal Government</span>

A newly-released study from the Congressional Research Service bolsters claims that <span style='font-size: 17pt'>the nation's largest banks profited off the Federal Reserve's financial crisis-era programs <u>by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.</u></span>

The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.

The Fed released records under pressure in December and March that showed the extent of its largesse. The CRS study shows for the first time how some of the most sophisticated financial firms could have taken the Fed's money and flipped easy profits simply by lending it back to another arm of the government.

The report was requested by Sen. Bernie Sanders (I-Vt.), who likened the crisis-era emergency loans to "direct corporate welfare to big banks," in a statement. The cash likely was lent back to Uncle Sam in the form of Treasuries and other debt "instead of using the Fed loans to reinvest in the economy," Sanders added.

In all, more than $3 trillion was lent to financial institutions from the Fed, and terms were generous. Junk-rated securities were pledged as collateral for taxpayer-backed loans. The Fed did not provide conditions for how the money was to be used.

As part of one Fed program, on 33 separate occasions, nine firms were able to borrow between $5.2 billion and $6.2 billion in U.S. government securities for four-week intervals, paying one-time fees that amounted to the minuscule rate of 0.0078 percent.

<span style="color: #3333FF">In another, financial firms pledged more than $1.3 trillion in junk-rated securities to the Fed for cheap overnight loans. The rates were as low as 0.5 percent.
During one three-month period in 2009, Bank of America borrowed more than $48 billion at rates ranging from 0.25 to 0.5 percent. Meanwhile, the largest U.S. lender tripled its holdings of Treasuries and other taxpayer-backed debt to about $15 billion -- securities that yielded 3.5 percent.</span>

During the third quarter of 2009, the bank borrowed $2.9 billion from the Fed through a program that charged 0.25 percent interest. In that same period, Bank of America increased its holdings of taxpayer-backed federal debt by $12 billion, according to the Congressional Research Service. Those securities yielded an average of 3.2 percent.


..In contrast, during the first year of the Obama administration, small businesses shuttered due to lackluster sales and a lack of credit, foreclosures surged, and credit contracted at one of the quickest rates on record.

"Why wasn't the Fed providing these same sweetheart deals to the American people?" asked Warren Gunnels, senior policy adviser to Sanders. <span style='font-size: 17pt'>"The Fed was practicing <u>socialism for the rich,</u> powerful and the connected, while the federal government was promoting rugged individualism to everyone else."</span> </div></div>

Q

link (http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html) </div></div>

A disgrace, and the program was designed by Paulson and Bush, the original agreements, signed and delivered, before the chimp left office, under TARP.

President Obama, and Geitner sure had a F-ed up mess handed to them in early 09!

But then, we knew it was going to be set up that way, and said so, at the time, IIRC!

As Greenspan so often relies on, and states, to cover his ass, there are limits to what our Government CAN DO, in the midst of an economic BUSH CRASH, and impending BUSH Depression, caused by the lack of transparency in the banking and financial industries.
As Paulson so often stated, there was no vehicle to permit Government control of the mess, and Government, is left in a stop gag situation.

Interesting, that Reiglicans have consistantly voted against creating tighter controls, over Bank, and financial industry corrupted practices.

We, average Americans, are under attack, by banks, oil, health costs, insurance costs, and the corruption of the greed of Wall Street, big Pharma, the polluters, and yet, it is a fact that Repiglicans consistantly vote against lowering any boom, on their corrupt and greedy, CEO's, who bilk us left and right, results of the Repiglican styled, corporate welfare, which led to the Bush impending depression!

Amazing, that our current President, has managed to limit our damages, as much as he has, given the total FUBAR, he inherited from George W. Bush!

G.

LWW
04-27-2011, 03:46 PM
It went right over your head Snoopy.

LWW
04-27-2011, 03:47 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 14pt'>Largest Banks Likely Profited By Borrowing From Federal Reserve, Lending To Federal Government</span>

A newly-released study from the Congressional Research Service bolsters claims that <span style='font-size: 17pt'>the nation's largest banks profited off the Federal Reserve's financial crisis-era programs <u>by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.</u></span>

The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.

The Fed released records under pressure in December and March that showed the extent of its largesse. The CRS study shows for the first time how some of the most sophisticated financial firms could have taken the Fed's money and flipped easy profits simply by lending it back to another arm of the government.

The report was requested by Sen. Bernie Sanders (I-Vt.), who likened the crisis-era emergency loans to "direct corporate welfare to big banks," in a statement. The cash likely was lent back to Uncle Sam in the form of Treasuries and other debt "instead of using the Fed loans to reinvest in the economy," Sanders added.

In all, more than $3 trillion was lent to financial institutions from the Fed, and terms were generous. Junk-rated securities were pledged as collateral for taxpayer-backed loans. The Fed did not provide conditions for how the money was to be used.

As part of one Fed program, on 33 separate occasions, nine firms were able to borrow between $5.2 billion and $6.2 billion in U.S. government securities for four-week intervals, paying one-time fees that amounted to the minuscule rate of 0.0078 percent.

<span style="color: #3333FF">In another, financial firms pledged more than $1.3 trillion in junk-rated securities to the Fed for cheap overnight loans. The rates were as low as 0.5 percent.
During one three-month period in 2009, Bank of America borrowed more than $48 billion at rates ranging from 0.25 to 0.5 percent. Meanwhile, the largest U.S. lender tripled its holdings of Treasuries and other taxpayer-backed debt to about $15 billion -- securities that yielded 3.5 percent.</span>

During the third quarter of 2009, the bank borrowed $2.9 billion from the Fed through a program that charged 0.25 percent interest. In that same period, Bank of America increased its holdings of taxpayer-backed federal debt by $12 billion, according to the Congressional Research Service. Those securities yielded an average of 3.2 percent.


..In contrast, during the first year of the Obama administration, small businesses shuttered due to lackluster sales and a lack of credit, foreclosures surged, and credit contracted at one of the quickest rates on record.

"Why wasn't the Fed providing these same sweetheart deals to the American people?" asked Warren Gunnels, senior policy adviser to Sanders. <span style='font-size: 17pt'>"The Fed was practicing <u>socialism for the rich,</u> powerful and the connected, while the federal government was promoting rugged individualism to everyone else."</span> </div></div>

Q

link (http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html) </div></div>

A disgrace, and the program was designed by Paulson and Bush, the original agreements, signed and delivered, before the chimp left office, under TARP.

President Obama, and Geitner sure had a F-ed up mess handed to them in early 09!

But then, we knew it was going to be set up that way, and said so, at the time, IIRC!

As Greenspan so often relies on, and states, to cover his ass, there are limits to what our Government CAN DO, in the midst of an economic BUSH CRASH, and impending BUSH Depression, caused by the lack of transparency in the banking and financial industries.
As Paulson so often stated, there was no vehicle to permit Government control of the mess, and Government, is left in a stop gag situation.

Interesting, that Reiglicans have consistantly voted against creating tighter controls, over Bank, and financial industry corrupted practices.

We, average Americans, are under attack, by banks, oil, health costs, insurance costs, and the corruption of the greed of Wall Street, big Pharma, the polluters, and yet, it is a fact that Repiglicans consistantly vote against lowering any boom, on their corrupt and greedy, CEO's, who bilk us left and right, results of the Repiglican styled, corporate welfare, which led to the Bush impending depression!

Amazing, that our current President, has managed to limit our damages, as much as he has, given the total FUBAR, he inherited from George W. Bush!

G. </div></div>

And negotiated by dear leader and approved overwhelmingly by the democrooks and voted against overwhelmingly by the R's.

Did you have a point?