Wonder when we’re going to start drug-testing the banksters for their welfare checks?

Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

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.

“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money.”

Don’t be silly! We don’t let bankers go down the tubes, only poor people. Geeze.

2 thoughts on “Yep

  1. Is this in addition to the $16.1-2 Trillion the Fed sent out the back door to the Big Banksters (incuding overseas banks)?

    Links for further reading on the $16 Trillion*.

    Sen. Bernie Sanders (I-Vt.) said “We now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world. This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.” (My emphasis)

    *The US GDP is $14.12 Trillion…. Interesting.

  2. From what I’ve been reading around the econ blogs, this bit of lending was definitely in addition to the $16.1 Trillion and in addition to the TARP.

    Actually, the TARP was kind a beard for all the secret lending to the banksters. It was a way for Congress and Bush and Obama to take the heat of public anger. The banks got their support but didn’t come under public scrutiny for how very, very much they’d fucked up their own books, not just, ya know, the economy of the Western world.

    I wonder how many Congress Critters knew they were used….

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