Largest Banks Profited by Borrowing From Federal Reserve, Lending to Federal Government
June 2nd, 2011Via: Huffington Post:
A newly-released study from the Congressional Research Service bolsters claims that the nation’s largest banks profited off the Federal Reserve’s financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.
The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.
hello there, Captain Obvious!
Don’t forget it wasn’t just a bank giveaway – it also put huge downward pressure on Treasury rates. I know people who still think the US won’t default because “Look at how low T-bill rates are!”
clawbacks, now.
stop the looting, start prosecuting, or folks are going to start shooting.
it really is just as simple as that.
cybele