Fed Opens Books, Revealing European Megabanks Were Biggest Beneficiaries

[defendandprotect]

Fed Opens Books, Revealing European Megabanks Were Biggest Beneficiaries


NEW YORK -- The Federal Reserve on Wednesday reluctantly opened the books on its monumental campaign to save the financial system in the midst of the recent crisis, revealing how it distributed some $3.3 trillion in relief.

The data revealed that the Fed's aid was scattered much more widely than previously understood. Two European megabanks -- Deutsche Bank and Credit Suisse -- were the largest beneficiaries of the Fed's purchase of mortgage-backed securities. The Fed's dollars also flowed to major American companies that are not financial players, including McDonald's and Harley-Davidson, through unsecured short-term loans.

The measure, initiated in Jan. 2009 to stimulate the flow of credit and keep household borrowing costs low, led the nation's central bank to purchase more than $1.1 trillion in mortgages packaged into the form of securities. The mortgage bonds are backed by Fannie Mae and Freddie Mac, the twin mortgage giants now owned by taxpayers.

Deutsche Bank, a German lender, has sold the Fed more than $290 billion worth of mortgage securities, Fed data through July shows. Credit Suisse, a Swiss bank, sold the Fed more than $287 billion in mortgage bonds.

http://www.huffingtonpost.com/2010/12/01/fed-opens-books-revealing_n_790529.html

[WannaJumpMyScooter]

1. .0000001th of that is 330,000

which would set me up for life


what a world

[mimitabby]

2. so please explain this

what does this mean ? were these bad purchases?

[defendandprotect]

3. Just re Freddie and Fannie Mae .... last I heard they were looking for another $8 billion.....

not sure if they got it, though don't recall seeing any further reports

on it -- or votes? Did FED just up and do it, or what -- ???

These companies should NOT be privatized again -- and, as far as I know,

they are still paying huge bonuses to their executives?