Bank of America and Citigroup, Rolling in Cash, Also Got Trillions in "Secret Loans" from the Fed
You know how Bernie Sanders released a list of ten corporations barely paying any taxes, and Bank of America and Citigroup were both on it? Well, it seems like the Fed thinks the behemoth banks aren't getting enough help, even after trillion-dollar bailouts by the Fed. Today Bloomberg reports that the banks—which the business/financial outlet calls "Wall Street Aristocracy"—received $1.2 trillion in "secret fed loans," just as the housing market started to collapse.
Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.
Meanwhile, the Fed also bailed out at least 30 European firms. Rep. Walter B. Jones, R-NC, put it best during a June 1 congressional hearing: “Why in hell does the Federal Reserve seem to be able to find the way to help these entities that are gigantic? They get help when the average businessperson down in eastern North Carolina, and probably across America, they can’t even go to a bank they’ve been banking with for 15 or 20 years and get a loan.”
Read the full piece at Bloomberg.