Secret Fed Loans to Banks

Parent Cafe
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<p>[Secret</a> Fed Loans Gave Banks Undisclosed $13B - Bloomberg](<a href=“Bloomberg - Are you a robot?”>Bloomberg - Are you a robot?)</p>

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<p>The banks…I just shake my head…</p>

<p>The hypocrisy…</p>

<p>The fraud…</p>

<p>The banks…take from society…take from shareholders…</p>

<p>[BAC</a> Basic Chart | Bank of America Corporation Com Stock - Yahoo! Finance](<a href=“BAC Interactive Stock Chart | Bank of America Corporation Stock - Yahoo Finance”>BAC Interactive Stock Chart | Bank of America Corporation Stock - Yahoo Finance)</p>

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<p>dstark: I don’t know what the chart means. Can you please explain it?</p>

<p>I was surprised to learn elected officials had no idea what was happening with the bank bail outs.</p>

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<p>Over the last 5 years…the s&p (most of the 500 largest companies in the USA…has lost </p>

<p>About 15% of it’s value…</p>

<p>While Goldman Sachs has lost over 50% of it’s value</p>

<p>And Citigroup and Bank of America have lost over 80% of their value…</p>

<p>So shareholders…who own these companies…are buried…</p>

<p>Executive managers…did pretty well…;)</p>

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<p>It all comes down to looking like you make a ton of profits,so those at the ‘casino at Wall Street’ can then upgrade your company stock,so suckers will buy it, and then the Wall Street casino takes its cut via transaction costs etc…there was a time when stock investing was just that,investing…now it is rigged so that the ‘house’ makes its money,while those who play lose theirs,for the most part</p>

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<h1>3 - Thanks for the explanation.</h1>

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<p>[xkcd:</a> Money Chart](<a href=“xkcd: Money Chart”>xkcd: Money Chart)</p>

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<p>davidthefat…that is an incredible chart…</p>

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<p>$13 billion is a drop in the bucket if you see the context.</p>

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<p>It’s more than $13 billion…</p>

<p>the banks would not have survived…</p>

<p>the banks were saved …</p>

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<p>Nice. Chart. But reading it my kindle and w/o glasses, the chart only looks nice.
-our lawmakers and their supporting staff/agencies/departments knew - I knew. Makes one want to be OWS or supporter. :@</p>

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<p>I am surprised they claim this was a big secret, at the time of the big crash in 2008 the fed was actively involved all over the place, and very little of it was ‘secret’. The fed supported when banks bought out other banks and financial firms (Bear Stearns getting bought out, or Merril lynch by BOA). This is nothing new, in the late 90’s the fed helped prop up Long Term Capital when it was poised to take down the economy after spectacularly failing in their trading strategy with the Russian and Asian currency crises…</p>

<p>And another bank bailout might be in the wind, the European debt crisis has the potential to take more banks with it. Not so much the direct debt (which took down MF Global recently) but the web of credit default swaps and such that the banks have liability with or lending money to those who issued them (post 2008 I might add, you would think they would learn). There is a tangled web around European debt that could further erode things.</p>

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<p>I think the size of the help was a surprise…</p>

<p>And to see banks like JPMorgan borrowing money; although, that did come out earlier.</p>

<p>[Banks</a> (like Airlines) Have NEVER Made Money… | The Big Picture](<a href=“http://www.ritholtz.com/blog/2010/10/banks-like-airlines-have-never-made-money/]Banks”>Banks (like Airlines) Have NEVER Made Money... - The Big Picture)</p>

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<p>Are you all saying you already suspected all this? And it is not really news?</p>

<p>I am wondering what would have happened if instead the government had bought up those delinquent mortgages.</p>