START A PETITION 25,136,189 members: the world's largest community for good
START A PETITION
x
1,246,108 people care about Politics

Banks May Have Earned $13 Billion Off Of Secret Federal Bailout Money

Banks May Have Earned $13 Billion Off Of Secret Federal Bailout Money

When the federal government declared the banking industry “too big to fail,” they weren’t exaggerating.† The amount of money provided to prop up these faltering institutions are only now coming to light, and a new report suggests that the amount of aid provided went far beyond what American taxpayers ever could have imagined.

According to Bloomberg News, a series of secret federal loans were made out to banks without disclosure, allowing many banks to pretend that they were not in any sort of real fiscal risk of failure.† Multiple lawmakers, including those who were in charge of finance committees within Congress, were completely unaware of the transactions, even as they themselves were trying to broker a deal for a financial bailout on their own.† In the end after trillions of dollars of bailout funding from Congress and secret federal reserve loans, the banking industry itself appears to have come out of the “crisis” having netted a full $13 billion in income.

“The Fed didnít tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day,” writes Bloomberg.† “Bankers didnít mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fedís below-market rates, Bloomberg Markets magazine reports in its January issue.”

How big were some of the handouts?† “[O]ne bank, New York-based Morgan Stanley (MS), took $107 billion in Fed loans in September 2008, enough to pay off one-tenth of the countryís delinquent mortgages.”

How did the big banks spend some of their new largess?† Of course, executive bonuses and pay increases happened.† And there’s the money that was invested into lobbying against federal regulations on banks.

So when you struggle to pay your mortgage, remember that your bank likely received an undisclosed, secret loan for 0.01 percent, when you can’t even get a refi for 5 percent because your house is too underwater to qualify.

 

Read more: , ,

Photo credit: revisorweb

have you shared this story yet?

some of the best people we know are doing it

122 comments

+ add your own
8:12PM PST on Dec 2, 2011

So what else is new, really old news, lol. We need to occupy usa. I guess Hank wasn't far off with 'United Socialist States of America'. I hope I am around to see the day all these money hungry a.h.'s are brought down to 'our level'. We appreciate what we have and want to conserve. They only appreciate 'How much am I going to get?'. They care nothing except themselves and how much they can destroy.

11:13AM PST on Dec 1, 2011

Obama needs to quit approving bailouts for big businesses and banks. I don't get it - people who like Obama seem to be the ones screaming against big business, yet their president continually approves bailouts for them.

9:06AM PST on Dec 1, 2011

The answer is the libertarian candidate. Gary Johnson is considering changing to that party because the GOP and the media have conspired to keep him from running a serious campaign. They did this because he is a much more viable candidate than Ron Paul who has consistently remains in the 3rd or 4th place in the polls and wants to legalize marijuana and thus keep the govt out of our lives; a place where they have no business anyway. The GOP is all for the corporations and the DNC is all for Big Labor. The American people are caught in the middle and none of them care that the country is going to shit and still all they care about is lining their own pockets and their friends' pockets too. If we want real CHANGE we have to start with getting rid of the Republicans and Democrats.

9:52AM PST on Nov 30, 2011

It figures!!!!!!

I also wonder how many American citizens went shopping on Black Friday with new credit cards with 0% APR for a specified time period. All those people who went shopping without a r-e-a-l cent to their names just made every bank in the nation a little richer!!!

Not only that, but they also weaken the OWS Cause. So, later down the line, when they realized they should have stood fast against the Banks and Corporate America, it will be way too late to fight for The Cause to the very end!!!

I was called in last minute to work for someone who got very sick on Black Friday. What I witnessed during my rather long shift really upset me, because I was supporter of The Cause, and I still am despite how many Occupied cites have evicted their protesters.

9:35AM PST on Nov 30, 2011

You should read the articles you link to. It's not "billions" that were loaned, it's "trillions". The problem is far worse than the average person can possibly imagine. Most people cannot even visualize a million dollars.

Every single person who keeps voting in these cretins is at fault. If you are unable to educate yourself and understand a principled candidate who abides by the Constitution, one who is not slopping at the trough as almost all of the current crop of candidates are (from both sides of the isle), you are guilty of perpetuating the problem.

It has nothing to do with "regulating" or "de-regulating", the corruption is systemic and is rooted in the federal reserve which prints money, and loans it to us for our use. The ignorance of the public is catastrophic and most people will not realize there is a problem until they are destitute.

You are no more than cattle with your bi-partisan bickering. They give you a choice between dumb and dumber, and you take a side and walk away thinking yourself superior since there are others who also wear your blinders.

6:17AM PST on Nov 30, 2011

Athina, I am in agreement with you that there are still patriotic people who are well versed in how the government should be run and they will have an opportunity before long to bring their views to the forefront. We need massive reform in Washington DC. So, who is the man (or woman) to get it done? That's the big question.

1:29AM PST on Nov 30, 2011

So, the US economy goes belly up at the same time banks and financial institutions that have
been halped to avoid collapse, are in fact acumulating profits from this "help".
Well, what the government is doing about that? By that I mean the whole positical system. Would it be beeter off if they let these institutions go belly up in the first place? It would be a little time of devastation and then we could restart the engine.
I'm optimistic and I think that we will see the changes needed and US will not hear again
ironic comments from abroad. I still believe there are some really patriots in both parties that
can overcome the ideological differencies, work together and solve the problem before it's too
late.

11:12PM PST on Nov 29, 2011

They screwed us.

11:00PM PST on Nov 29, 2011

It's called socialized risk for privatized gain. Been happening for years.

9:43PM PST on Nov 29, 2011

and they wonder why occupy wall street is happening? let's see some real changes...greed is making our nation look sadly disgusting.

add your comment



Disclaimer: The views expressed above are solely those of the author and may not reflect those of
Care2, Inc., its employees or advertisers.

ads keep care2 free

Recent Comments from Causes

This is from an obviously big pharma source: https://www.facebook.com/IFeakingLoveScience/photos/…

Just to clarify you are apparently, not aware of the multiple children one woman alone can reproduce…

So TexASS politicians see no redemption in former drugs users/mothers. And write their laws accordingly.…

meet our writers

Beth Buczynski Beth is a freelance writer and editor living in the Rocky Mountain West. So far, Beth has lived in... more
Story idea? Want to blog? Contact the editors!
ads keep care2 free



Select names from your address book   |   Help
   

We hate spam. We do not sell or share the email addresses you provide.