Washington Babylon — November 11, 2008, 12:22 pm

Who Got That $2 Trillion? Fed Won’t Tell

From Bloomberg:

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

“The collateral is not being adequately disclosed, and that’s a big problem,” said Dan Fuss, vice chairman of Boston-based Loomis Sayles & Co., where he co-manages $17 billion in bonds. “In a liquid market, this wouldn’t matter, but we’re not. The market is very nervous and very thin.”

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure. The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

April 2015

The Joke

= Subscribers only.
Sign in here.
Subscribe here.

Abolish High School

= Subscribers only.
Sign in here.
Subscribe here.

Beat Reporter

= Subscribers only.
Sign in here.
Subscribe here.

Going It Alone

= Subscribers only.
Sign in here.
Subscribe here.

Rotten Ice

= Subscribers only.
Sign in here.
Subscribe here.

Life After Guantánamo

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

[Browsings]
Photograph by the author
Article
Rotten Ice·

= Subscribers only.
Sign in here.
Subscribe here.

“When I asked if we were going to die, he smiled and said, ‘Imaqa.’ Maybe.”
Photograph © Kari Medig
Article
Life After Guantánamo·

= Subscribers only.
Sign in here.
Subscribe here.

“I’ve seen the hell and I’m still in the beginning of my life.”
Illustration by Caroline Gamon
Article
Going It Alone·

= Subscribers only.
Sign in here.
Subscribe here.

“The call to solitude is universal. It requires no cloister walls and no administrative bureaucracy, only the commitment to sit down and still ourselves to our particular aloneness.”
Photograph by Richard Misrach
Article
No Slant to the Sun·

= Subscribers only.
Sign in here.
Subscribe here.

“She didn’t speak the language, beyond “¿cuánto?” and “demasiado,” but that didn’t stop her. She wanted things. She wanted life, new experiences, a change in the routine.”
Photograph © Stuart Franklin/Magnum Photos

Acreage of a Christian nudist colony under development in Florida:

240

Florida’s wildlife officials decided to remove the manatee, which has a mild taste that readily adapts to recipes for beef, from the state’s endangered-species list.

A 64-year-old mother and her 44-year-old son were arrested for running a gang that stole more than $100,000 worth of toothbrushes from Publix, Walmart, Walgreens, and CVS stores in Florida.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Driving Mr. Albert

By

He could be one of a million beach-bound, black-socked Florida retirees, not the man who, by some odd happenstance of life, possesses the brain of Albert Einstein — literally cut it out of the dead scientist's head.

Subscribe Today