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
Federal Reserve data breakdown and press release here. More from WSJ here
…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)…
Market Mover Monday: FED expanding TALF, no WH FY10 budget forecast yet? GE Capital RE to sell MBS to China…
Market Update: 11:00am EST: DOW down 190.90 to 9130.50; S&P down 23 to 981 and NAS down 48 to 1936 (ouch we were just over 2000 last week)….
CNBC: Federal Reserve is announcing now they will expand TALF to March 2010 from December 2009, commercial securities program through June 2010..
Not a soul reported the WH FY 2010 budget update the WH said they would release Friday at 5:00pm…is it so bad they didn’t release it?If we go to the WH site we will get cookied! Oh Noes! will any journOlist person NOTICE they have not reported the figures to us yet?!
GE Capital RE is about to sell China a bunch of our mortgages with Uncle Sam money isn’t that great? frakkers.
China Investment Corp, the country’s $200 billion sovereign wealth fund, is set to pour up to $2 billion soon into the U.S. mortgage system by hiring mandates under the U.S. Treasury-backed Public-Private Investment Plan (PPIP)..
…Under the PPIP program launched earlier this year the U.S. government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks…
...CIC, established by the Communist government in late 2007, is keen to participate in the PPIP as it expects the U.S. property market to start to recover gradually late this year, said the sources.
This is the same PPIP that had an EPIC FAIL when NO BIG BANK would participate, Jamie Dimon of JPMChase was all, we are eager to get the hexx away from the government, in his own words of course, lol…so the toxic assets still sit on big bank books while Jeff Immelt, (worst CEO in the worrrrld!?!) prepares to sell our loans directly to China..this should go over well with evicted homeowners 😦 maroons.
Midnight Oil courtesy of onlythepianoplayer
Update: FASB modifies Mark to Market…
UPDATE: 9:33AM est: On the wires now here
The changes will allow the assets to be valued at what they would go for in an “orderly” sale, as opposed to a forced or distressed sale. The new guidelines will apply to the second quarter that began this month.
In a twist, though, the expanded leeway for financial institutions could undercut the government’s new financial rescue program in which it is joining with private investors to buy up about $500 billion in toxic assets from banks, some experts say.
The mark-to-market rules have forced banks to take steep write-downs on some assets, especially securities tied to high-risk subprime mortgages.
An estimated $2 trillion in soured assets is gumming up banks’ books. As the financial crisis has ground on, more banks have foundered and failed. That’s prompted the industry and lawmakers of both parties to push for the accounting relief and flexibility.
But some fear that companies will use the leeway to boost the value of the assets on their books to “unrealistic levels,” Robert Willens, an expert on tax and accounting issues for Wall Street clients, told The Associated Press last week.
We’re back!! Check out FASB news on the first vote on changes..
Breaking on CNBC right now,
FASB removes presumption that assets in inactive market are automatically distressed’
FASB: New mark to market guidance should be prospective not retroactive: new guidance effective for 2009 Second Quarter; Q1 application permitted
(this will help financials use cash flow instead of last price to mark assets in frozen markets, more votes from FASB coming forthwith!)
PS Were I Jamie Dimon, I would remark with these rules and I would NOT sell into the Geithner PPIP plan, I would wait for my assets to come back, which is what the banks have been doing already, sort of counter productive in some ways we shall see..
Financials SOARING on the news, brushing off a bad weekly jobless claims number..
DJ futures up 118 and financials across the board higher…
Sheila Bair on Toxic Asset Plan…
Analysis and discussion with FDIC Chairman Sheila Bair. (For The Record)
Moderate in the Middle 