Fron Zero Hedge:
Submitted by Tyler Durden on 12/10/2010
With the Federal Reserve now actively participating in capital markets, it should be noted that just like every other asset manager, the Fed has to be held accountable for its trading efficacy. After all, the Treasury takes every opportunity to remind the US public how courtesy of record amounts of new government debt, it has managed to make “profits” on its assorted investments, which are merely transfers of risk from one entity to another, and the “another” being the US taxpayer, although not directly, but indirectly via the now ludicrous amount of US debt which will never be repaid. Which is why the US taxpayer may want to know that in just the most recent POMO schedule – that from early November to December – the Federal Reserve has lost $2.4 billion in taxpayer capital by its mistimed market operations, primarily due to the recent rise in interest rates. This is $2.4 billion that has not evaporated, but instead has been transferred to Primary Dealers under the “profit on trade” category. This is also money that will be used to determine, and fund, banker bonuses.
by Marian Wang
A provision in the financial reform law forced the Federal Reserve to disclose the details of the trillions it lent out at the height of the recent financial crisis.
You can see the data from some of the Fed’s emergency lending programs in our interactive. In all, there were 11 programs—a mess of confusing acronyms like AMLF, TALF, PDCF, CPFF and so on —but generally speaking, they were designed to stabilize the economy by enabling financial firms to keep many forms of lending going at a time when credit was hard to come by. Here’s a rundown of what’s come to light from this data so far.
From The Huffington Post:
At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later, as a result of an amendment that I was able to include in the Wall Street reform bill, we have begun to lift the veil of secrecy at the Fed, and the American people now have this information.
It is unfortunate that it took this long, and it is a shame that the biggest banks in America and Mr. Bernanke fought to keep this secret from the American public every step of the way. But, the details on this bailout are now on the Federal Reserve’s website, and this is a major victory for the American taxpayer and for transparency in government.
ProPublica – Interactive: Which Banks Got Emergency Loans from the Fed During the Financial Meltdown?
by Karen Weise and Dan Nguyen
Yesterday, the Federal Reserve released data on more than 21,000 loans and other deals it made through a dozen emergency programs created during the financial crisis. We looked at three of these programs and created an interactive news application analyzing the almost $15 trillion that the Fed loaned to financial institutions in hopes of boosting commercial lending and liquidity.
Full coverage: The Wall Street Money Machine