Secret low-interest lending program by the Fed?

You need to know this. Forget about the $700 billion dollars in federal aid known as TARP that went to the banksters back in 2008. That was just the tip of the iceberg. According to new secret documents released yesterday by the Federal Reserve – between 2007 and this year – the Fed pumped more than 3 trillion dollars into the hands of banks and businesses to stave off financial collapse. 3 trillion dollars! Most of that money came in the form of short term lending – banks were given billions of dollars at interest rates of a half percent or even sometimes as low as .0077%. That’s essentially free money. So exactly who benefited from this secret low-interest lending program by the Fed? The usual suspects – Citigroup – Lehman Brother – and Merril Lynch. Foreign banks took advantage too – like UBS of Switzerland and BNP Paribas of France. Also – Americans businesses like McDonalds – Verizon – and Caterpillar received some of the cake as well. Suntrust Bank received about $7.5 billion – directly from their own CEO who happened to also be serving on the Board of Directors at the Atlanta Federal Reserve at the time. At the height of this program – in 2008 – the Fed had over $1.5 trillion in outstanding loans. The release of these documents - showing more than 21,000 transactions unknown until now – highlights the need for a more transparent Federal Reserve. An issue that’s been advanced by Members of Congress like Ron Paul in the House and Bernie Sanders in the Senate. It also shows just how strong Wall Street’s grip on our government is. Banksters profited off this program and now sit on mountains of cash – while small businesses suffer around the country and can't get their own loans. The very same financial institutions that received loans at an interest rate of less than a half percent – now are charging their credit card users a 30% interest rate. Sound fair to you?? On top of that – these institutions spent millions of dollars lobbying Congress during the financial reform debate – while at the same time they were borrowing free money from the government. This is insanity. It’s time to change our priorities in our country.


amazon's picture
amazon 12 years 27 weeks ago

*We need a retail banking system

*Investment banking should be seperated from retain banks again

*All who got public money should be re-regulated esp. with respect to salaries, i.e., make them consistent with the pay of executive regulators.

stonesphere's picture
stonesphere 12 years 27 weeks ago

"between 2007 and this year – the Fed pumped more than 3 trillion dollars into the hands of banks and businesses to stave off financial collapse. "

Yet we continue to verge on financial collapse. Warfare continues in Iraq, Afghanistan, and Pakistan.

Korea and Iran threaten on the Horizen with the House of Saude encouaraging us to expand the war, and all the while Palistine and Isreal wait in the wings.

In that climate , I suspect that those who have hand to power and wealth are far more interested in hoarding as much treasure as they can muster in the face of financial desaster than they are in investing into the U.S economy which is shakey to say the least.

Airborne855's picture
Airborne855 12 years 27 weeks ago

This is essentially just like 1700 America. It's time for one of those periodic revolutions that Thomas Jefferson recommended. Keep the Constitution as the ship of state, but exterminate all the rats.

ArtD's picture
ArtD 12 years 27 weeks ago

They should have given the money to the tax payers. They would own their homes insted of the banksters.

hillsofwisc's picture
hillsofwisc 12 years 27 weeks ago

"Our text books tell us that the Colonies won the Revolutionary War over 200 years ago, but because we have lost sight of the monetary cause, it is still in progress with the outcome very much in doubt.

Our forbearers were not always so clueless. Thomas Jefferson had this to say:

“The Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution . . .”

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.”

“If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.”

John Adams wrote in a letter to Jefferson:

“All the perplexities, confusion, and distress in America arise, not from defects in the Constitution or confederation, not from want of honor and virtue, so much as from downright ignorance of the nature of coin, credit and circulation.” " (from Richard Kotlarz writings)

If we remain ignorant of the way our "Debt Based Currency" is issued we cannot help but have this kind of outcome. Usury Free Currency - look it up

youtube Money as Debt 5 part series watch them all

C'mon Thom, show some leadership and tell the whole story.

Magonista 12 years 27 weeks ago

I think that money would have been better used in increasing the minimum wage for the working class people of America. Supporting public financing would also help.

1st start by eliminating the exemptions to minimum wage - farm workers, servers, and domestic service. Those exemptions were put in place by Dixiecrats in order to keep African Americans from making the same income and working Whites. If there was a minimum wage for these jobs more US born workers would be willing to work these jobs.

2nd by increasing the minimum wage in general there would be a boost in the economy as these workers would likely spend that increase. This increased spending on basic goods would grow our economy much faster than the terrible approach of supporting the rich. All that did was continue to rob the poor and distribute wealth to the rich.

Supporting public financing for elections would give working class people more opportunities to get involved with politics. We see what we get when you need to depend on rich people for democracy!

sangrebuen 12 years 27 weeks ago

With the money that they paid the banks we could still have propped up the banks by giving each adult in this country $25,000 to go directly into an IRA

With another $25,000 we could have given each adult over 21 to do 1 of 4 or 5 things

1. Refinance their home

2. Install solar panels for water heat and electricity

3. Purchase a Hybrid vehicle

4. Return to School

5. For those poor enough, it could have been used for groceries, clothing, rent, and health insurance

Pablito's picture
Pablito 12 years 27 weeks ago

What's new.....Our government has been robbing us to pay for the rich.....

Anyway,does anyone know who are the Democratic senators who are against voting

for tax cuts for the middle class ?

We keep hearing"oh we don't have the votes"......Well who are the Democratic Senators who won't vote for middle class tax cuts...instead,you have Harry Reid doing is best to protect Senators who hate ordinary Americans by just throwing out we "don't have the votes" bullshit.

Thom Harthman you are in Washington,DC,surely you must have knowledge who these Senators are.

ggluck's picture
ggluck 12 years 27 weeks ago

Listened to an "Economist" podcast this morning where Nassim Taleb was interviewed and he said that 2036 will see tge demise of the Fed! Thom might want to interview him.

DavidTheLiberal's picture
DavidTheLiberal 12 years 22 weeks ago

The banking system that was too big to fail is yet still just that and remains unchecked. We are regulating some but not the real cause. The instruments that caused this still float out there like the sword of Damocles and we have not called them all in or accounted for all the mess that remains. Obama and our fed are on a collision course that he may just bumper car through when he should take the heat and fix the Fed. I voted for change and got told to hope for things promised like government transparency. Tell me of the real transparency we have gotten....I don't see it and know we are being disserved.

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