The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
The Fed didn't tell anyone which banks were in trouble so deep they required emergency loans of a combined $1.2 trillion on Dec. 5, 2008, their single neediest day.
Bankers didn't mention that they took tens of billions of dollars 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 Fed's below-market interest rates, Bloomberg Markets magazine reports in its January issue.
Assets grewTotal assets held by the six biggest U.S. banks increased 39 percent to $9.5 trillion on Sept. 30, 2011, from $6.8 trillion on the same day in 2006, according to Fed data.
The big six - JPMorgan, Bank of America, Citigroup, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley - took 63 percent of the Fed's emergency-loan money as measured by peak daily borrowing, the data show.
Combined, the six spent $29.4 million on lobbying in 2010, a 33 percent increase from 2006, according to OpenSecrets.org. Lobbying by the American Bankers Association, a trade organization, increased at about the same rate, OpenSecrets.org reported.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/28/BUGK1M523B.DTL&ao=2#ixzz1f7q1H761
Hey loan ME a couple of million at below market rates so I can play too! Jerks.