The Federal Reserved released documents Wednesday identifying the recipients of $3.3 trillion in emergency aid provided at the height of the financial crisis.
“Two European megabanks — Deutsche Bank and Credit Suisse — were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities,” The Huffington Post‘s Shahien Nasiripour reported.
More than $290 billion worth of mortgage securities were sold to Deutsche Bank, a German lender. Credit Suisse, a Swiss bank, got more than $287 billion in mortgage bonds.
“The mortgage purchase program has come under withering criticism by economists and financial experts who believe the Fed’s initiative has unnecessarily inflated the housing market, and prevented the cleansing that pretty much all experts believe is necessary for a full economic rebound,” Nasiripour wrote.
“In addition, the Fed disclosed details of ‘swap’ arrangements with foreign central banks,” the Associated Press reported. “These occurred when the Fed traded much-in-demand dollars for foreign currencies to try to ease credit. The foreign central banks, in turn, lent the dollars to banks in their countries that needed dollar funding. The Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan were involved in the exchanges.”
Banks weren’t the only recipients of Fed money. Corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota also relied the programs.
In 2008, as commercial loans dried up, the Fed became the only source of loans for otherwise creditworthy corporate borrowers.
The data, which took months to compile and had previously been secret, was released Wednesday to comply with July’s Dodd-Frank law overhauling financial regulation.
“The information spans six loan programs as well as currency swaps with other central banks, purchases of mortgage-backed securities and the rescues of Bear Stearns Cos. and American International Group Inc,” Bloomberg noted.
“We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government,” Sen. Bernie Sanders (I-VT) told reporters on Nov. 17.
“The act requires the Fed, after a two-year delay, to identify firms that, following the law’s passage, borrow through its discount window and participate in its purchases or sales of assets such as mortgage-backed securities and Treasuries,” Bloomberg observed.
‘String of intentional outright lies’: Bloomberg campaign deletes tweets containing fake quotes of Bernie Sanders praising despotism
"Mike Bloomberg has been publishing videos attacking Bernie Sanders and Bernie supporters for being 'toxic'—and then Bloomberg fabricated grotesque fake quotes and attributed them to Bernie."
Former New York Mayor Michael Bloomberg's campaign came under fire after posting a series of now-deleted tweets that included fake quotes of 2020 Democratic frontrunner Sen. Bernie Sanders praising authoritarianism.
GOP senator schools Trump’s DHS chief for being unable to answer coronavirus questions: ‘Your job is to keep us safe!’
Sen. John Kennedy (R-LA) grew frustrated with acting Department of Homeland Security Secretary Chad Wolf when he couldn't answer some basic questions about the potential for a major coronavirus outbreak in the United States.
"How many [cases of coronavirus in the United States] are you anticipating?" Kennedy asked Wolf during a Senate hearing.
"We're working with [Health and Human Services] to determine that," Wolf replied.
"How many are you anticipating?" Kennedy asked again.
"We do anticipate the number will grow, I don't have an exact figure for you," he replied.
Trump’s attack on Sotomayor and Ginsburg backfires as people point out conservative justices’ conflicts of interest
This Monday, President Trump attacked liberal Supreme Court Justices Sonia Sotomayor and Justice Ruth Bader and demanded that they recuse themselves from any cases that involve him.
“‘Sotomayor accuses GOP appointed Justices of being biased in favor of Trump,’” Trump tweeted while citing Laura Ingraham of Fox News. “This is a terrible thing to say. Trying to ‘shame’ some into voting her way? She never criticized Justice Ginsberg when she called me a ‘faker’. Both should recuse themselves on all Trump, or Trump related, matters!”