Some great FOI work here by Bloomberg, telling the tale of just how crazy the financial meltdown really was…
Citigroup and Bank of America were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.
By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.
Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress….
- Bloomberg FOIA Request Reveals $1.2 Trillion in Secret Fed Loans (news.firedoglake.com)
- Wall Street Aristocracy Got $1.2T in Loans (xoutsocialism.wordpress.com)
- Tracking the Fed’s $1.2 trillion Wall Street bailout (dailykos.com)
- Forget TARP: Wall St Borrowed $1.2 Trillion from Fed (ritholtz.com)