What do you do for $:Fed reveals partial data on emergency lending facilities, still mum on discount window
Update: Well, it would appear absolutely EVERYONE got a bailout except the middle class. And I do mean everyone.
Zero Hedge breaks down the 35 foreign banks that the Fed bailed out here.
…$1.27 trillion in agency MBS was traded by foreign banks…
led by the $410 billion by German-based Deutsche Bank ..
…the $382 billion by the Switzerland-based Credit Suisse.
Other highlights of the disclosure include that GE among other commercial endeavors got $ from the Fed, and that the Fed has essentially been taking all the polluted assets from everyone with a pulse (again, except for the US middle class consumer/homeowner who has been lectured about ‘moral hazard’ and whose house has been foreclosed upon):
.the Federal Reserve purchased $1.25 trillion in agency MBS from all participating banks.
Goldman Sachs borrowed 84 times from Fed’s dealer facility (PDCF) from Sept. 15 to 11/26/08 for amounts ranging from $100m to $8b
Bank of America borrowed 118 times from the PDCF from Sept 18 2008 to May 2009, in amount ranging from $375 million to $11 billion.
And even CA Pension funds got in on the bail out action, per ZeroHedge:
Looking at the TALF data, we see that the biggest borrower by subscription is Calpers, with a total of about $5.4 billion
…The data released Wednesday include short-term liquidity moves for financial institutions and companies made as part of the Fed’s traditional role as lender of last resort, liquidity injections directly to borrowers and investors in key credit markets and financial support for Bear Stearns Cos. and American International Group Inc. (See all the data from the Fed)
Fed officials reported details on more than 21,000 transactions from December 2007 to July 2010. The emergency programs caused the size of the Fed’s balance sheet to swell. (See a history of the Fed’s lending)…
Update 2: Bloomberg Interview: Video Up…Larry Summers backs off Obama Administration forecast of 4.00% GDP in 2011..
Update 2: Gee Larry gave an awful lot of ‘Exclusive’ interviews today LOL. Here is Bloomberg:
Maria Bartiromo is doing an EXCELLENT interview with Larry Summers on CNBC now..
She is cornering him left and right and really nailing him down on answers
Heh- He just backed WAAAY OFF the Administration’s 4.00% GDP for 2011, waaaay off
Then she followed up in a one-two with a, ‘well okay if the economy does not grow at 4.00 in 2011 are you prepared to tell him, Obama, to back off raising taxes on top earners?’
He won’t answer, wiggle wiggle, it is expiring Bush Tax cuts he keeps saying, she got him anyway
I will get it up right away when CNBC loads it
Right now, Dow down 102 to 7954, NAS down 20 to 1622 S & P down 11 to 846..
Midday DOW up 60 to 7850, S&P up 9 to 825 and NAS up 27 to 1589. Street happy about uptick restoration (in SEC comment period now) and possible elimination of naked shorts..
Insurers are the latest group to line up with their hands out to get taxpayer money. Maybe they feel safe since they have state regulators, good luck with that. (Bloomberg News)
And the Federal Reserve’s TALF program fell FLAT. Gee wonder why no one wants to get in bed with this Administration and Congress? SHOCKAH!!!
TALF program is losing momentum that could spell trouble for the bank’s effort to revive consumer lending. (Bloomberg News)
Airtime: Mon. Mar. 23 2009 | 8:40 AM ET
Debating whether the administration’s trillion dollar plan is putting too much taxpayer money at risk, with Stephen Moore, Wall Street Journal editorial board; CNBC’s Rick Santelli & Steve Liesman
Beltway Chatter: Tim Geithner’s (*Paulson’s) plan;Obama Budget and AIG ‘bonus shock and awe’ campaign, TOTUS Spring Tour Continues ..
Krugman gives the Treasury toxic asset plan two thumbs down, he didn’t like it when Hank Paulson tried to sell it many moons ago with TARP One, neither did we, LOL…Billions later we are laughing with the tears of a taxpaying clown….
The Geithner plan has now been leaked in detail. It’s exactly the plan that was widely analyzed — and found wanting — a couple of weeks ago. The zombie ideas have won. The Obama administration is now completely wedded to the idea that there’s nothing fundamentally wrong with the financial system —
Treasury has decided that what we have is nothing but a confidence problem, which it proposes to cure by creating massive moral hazard. … And I fear that when the plan fails, as it almost surely will, the administration will have shot its bolt: it won’t be able to come back to Congress for a plan that might actually work.
Krugman on further review of the plan:
Why was I so quick to condemn the Geithner plan? Because it’s not new; it’s just another version of an idea that keeps coming up and keeps being refuted. It’s basically a thinly disguised version of the same plan Henry Paulson announced way back in September.
Krugman today on the plan.
Sen. Gregg confirms CBO is right, (ironic no?) and says Obama Budget will bankrupt us:
Breaking: Fed Decision…BUYING LONG TERM TREASURIES!! 10 Yr yield dropping, BOOYAH for housing, refis for all :0) (but buy GOLD cause inflation in 2 years will be UGLY)
UPDATE: On the wires now
The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
Bill Gross, PIMCO, who should know, just said the FED long term means the 10 yr not the 30..yep…yay for housing, rates at 4.00 for all Americans BOOYAH!!!
BACK OFF TIMMEH, BEN IS DA MAN!
FED STATEMENT HERE
To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months. The Federal Reserve has launched the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses and anticipates that the range of eligible collateral for this facility is likely to be expanded to include other financial assets. The Committee will continue to carefully monitor the size and composition of the Federal Reserve’s balance sheet in light of evolving financial and economic developments
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.”
Steve Liesman to Bill Gross how much concern this is essentially monetizing the debt? Thats exactly what MiM has been saying :0) FED is reflating and taking no prisoners, my fear is Obama will sack Ben and put in Summers who wont do what Volcker did and kill the inflation when needed later….but hell take the bounce and refi if you can, rates should drop down to 4.50 now….
GOLD taking off, was under 900 now backing up over 920
DOW now up over 100
US Dollar dropping hard now, market averages popping up…..UPDATE: Dollar drop
Doubling size of amount of agency MBS (mortgage backed securities) Fed buying 750 billion and buying up to 300 billion of long term treasuries in next 6 months!!
FED balance sheet increasing to three trillion
treasury rates PLUNGING per Rick Santelli
Dollar getting whacked a bit says Rick, A whole new world Santelli says
this is huge
CNBC Steve Liesman breaking live…
Fed FINALLY launches the TALF!! (Term Asset-Backed Securities Loan Facility), here’s hoping this gets some commercial paper moving….
TALF to initially provide up to $200 billion in financing for new auto, credit card, student and small business loans
Fed reduces rates and haircuts on small business and student loans from original plan (has decided less risk of default)
Fed analysing expanding TALF to CMBS (commercial mortgage backed securities) and other assets such as CLOS, CDOS (collateralized debt obligations), along with Private Label mortgage backed securities..
UPDATE: I am not the only one floored by lack of ANYTHING specific DOW plummeting down 300 now…GOLD taking off, up $25 now….
Geithner said they were exploring options and meeting with all key players yada yada, nothing not a GD thing specific
nothing specific on housing at all, no mo mods nothing, frak me man…. all the hype all the meetings pre inauguration and still NOTHING SPECIFIC?!?!? Markets hate it down 233 on DOW and dropping