Fed to Name Recipients of $3.3 Trillion in Aid During Crisis

[girl gone mad]

Okay Ms. Maddow, and all of the other catapulters of the "TARP has been paid back" super happy bank propaganda, let's see if you can (or will) finally put 2 and 2 together.

With gratitude to Mark Pittman..

From http://www.bloomberg.com/news/2010-12-01/fed-will-name-recipients-of-3-3-trillion-in-emergency-aid-during-crisis.html">Bloomberg:

The Federal Reserve, under orders from Congress, plans today to identify recipients of $3.3 trillion in emergency aid the central bank provided as it fought the worst financial crisis since the Great Depression.

The Fed intends to post the data on its website at midday in Washington to comply with a provision in 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.

...

“It is quite conceivable it is going to stir up the political pot,” said Ward McCarthy, chief financial economist at Jefferies & Co. Inc. in New York. “But political criticism isn’t going to prevent them from doing what they need to do. An important part of being a Fed official is to understand whatever you do is going to come under scrutiny.”

The data will probably show the magnitude of central bank support to companies including Bank of America Corp. and General Electric Co. after the collapse of Lehman Brothers Holdings Inc. spurred a surge in private borrowing costs. Lawmakers demanded disclosure after the Fed approved aid dwarfing the federal government’s $700 billion Troubled Asset Relief Program.

http://www.bloomberg.com/news/2010-12-01/fed-will-name-recipients-of-3-3-trillion-in-emergency-aid-during-crisis.html">More...

[girl gone mad]

1. Update:

From http://www.zerohedge.com/article/observations-progress-fed-data-dump-which-we-learn-merrill-pledged-77-fed-loan-equity-collat">Zero Hedge:

Observations In Progress On The Fed Data Dump

As we are going through the excel sheets from the Fed dump, we will share our key findings. Keep in mind this is very raw data and will need far more processing before conclusions can be derived.

* One of the biggest stunners: Bank of America pledged as much as 77.2% of a loan from the PDCF with equity collateral! So much for the Fed taking fiduciary precaution with what crap it lends taxpayer money against. This is a topic we first (very disgusted) discussed over a year ago.



* Probably the most interesting data is the disclosure of the Fed purchases of MBS securities from the Primary Dealers as for the first time ever we get information on the actual transaction prices paid by Brian Sack. We will refine the data far more soon with transaction basis granularity, but for now here are the Primary Dealers from which the Fed purchased hundreds of billions of MBS from:



* Goldman Sachs (GS) borrowed 84 times (50 for just the dometic operations) from Fed's dealer facility (PDCF) from Sept. 15 to Nov. 26, 2008 for amounts ranging from USD 100mln to USD 18bln



http://www.zerohedge.com/article/observations-progress-fed-data-dump-which-we-learn-merrill-pledged-77-fed-loan-equity-collat">more...

Oh my.

[girl gone mad]

2. First Blatantly Unlawful Fed Act: AIG Foreign Sub Stock

http://market-ticker.org/akcs-www?post=173675

Now we see why The Fed didn't want to tell the truth - it unearth this (among probably more)

http://www.federalreserve.gov/monetarypolicy/bst_supportspecific.htm">Gee, what part of Section 14 of The Federal Reserve Act authorized this?

On March 2, 2009, the Federal Reserve and the Treasury announced a restructuring of the government's assistance to AIG. Specifically, the government's restructuring was designed to enhance the company's capital and liquidity in order to facilitate the orderly completion of the company's global divestiture program. As part of this restructuring, on December 1, 2009, the Federal Reserve completed transactions under which the FRBNY received preferred interests in two special purpose vehicles formed to hold the outstanding common stock of AIG’s largest foreign insurance subsidiaries, American International Assurance Company Ltd. (AIA) and American Life Insurance Company (ALICO). In exchange, the outstanding loan balance held by, and maximum amount available to, AIG under the line of credit were reduced by $25 billion.

That's a blatant and black-letter violation of http://www.federalreserve.gov/aboutthefed/section14.htm">Section 14, no part of which allows The Fed to take an equity interest in a company irrespective of the means or terms.

Other interesting finds..

The Fed bought $300 Billion in MBS from Deutshe bank (foreign owned).

At the time that WaMu was seized and sold off to JP Morgan (deal of the century), WaMu was actually solvent and JP Morgan was insolvent.

[snot]

3. K&R'd

[girl gone mad]

4. Fed made $9 trillion in emergency overnight loans

At .07% interest, accepting junk for collateral.

http://money.cnn.com/2010/12/01/news/economy/fed_reserve_data_release/index.htm?hpt=T1