Devastating Earthquakes, Catastrophic Tsunami, potential nuclear holocaust …. and now you can add massive inflation.
Compared to the BOJ , Ben Bernanke is an amateur hack.
Tag: Fed
Dec 02 2010
Someone please diary this
Someone please diary this info. I do not have time and this is really huge
Banking giants leaned heavily on Fed in crisis
* Fed releases details of loans made during crisis
* Barclays took largest loan from broker-dealer window
* Citigroup, BofA sought support well into spring 2009
* Korea, Harley Davidson borrowed commercial paper (Recasts, adds details, analyst reaction)
By Pedro da Costa and Rachelle Younglai
WASHINGTON, Dec 1 (Reuters) – Goldman Sachs Group (GS.N) Citigroup (C.N) and other big U.S. banks repeatedly sought help from the Federal Reserve during the financial crisis, according to data on Wednesday that showed just how precarious their situation was at the time.
Many of the firms now boasting solid profits had to rely on funding from the U.S. central bank, which essentially acted as the glue holding the financial system together in the tumultuous months that followed the bankruptcy of Lehman Brothers in September 2008.
Mar 16 2010
Timmy-Gate: Did Geithner Help Hide Lehman’s Fraud?
Timmy-Gate: Did Geithner Help Hide Lehman’s Fraud? By L. Randall Wray
Timmy-Gate Takes a Turn For The Worse: Did Geithner Help Lehman Hide Accounting Tricks?
Just when you thought that nothing could stink more than Timothy Geithner’s handling of the AIG bailout, a new report details how Geithner’s New York Fed allowed Lehman Brothers to use an accounting gimmick to hide debt. The report, which runs to 2200 pages, was released by Anton Valukas, the court-appointed examiner. It actually makes the AIG bailout look tame by comparison. It is now crystal clear why Geithner’s Treasury as well as Bernanke’s Fed refuse to allow any light to shine on the massive cover-up underway.
Recall that the New York Fed arranged for AIG to pay one hundred cents on the dollar on bad debts to its counterparties-benefiting Goldman Sachs and a handful of other favored Wall Street firms. (see here) The purported reason is that Geithner so feared any negative repercussions resulting from debt write-downs that he wanted Uncle Sam to make sure that Wall Street banks could not lose on bad bets. Now we find that Geithner’s NYFed supported Lehman’s efforts to conceal the extent of its problems. (see here) Not only did the NYFed fail to blow the whistle on flagrant accounting tricks, it also helped to hide Lehman’s illiquid assets on the Fed’s balance sheet to make its position look better. Note that the NY Fed had increased its supervision to the point that it was going over Lehman’s books daily; further, it continued to take trash off the books of Lehman right up to the bitter end, helping to perpetuate the fraud that was designed to maintain the pretense that Lehman was not massively insolvent.