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News Link • Federal Reserve

Guess How Much Wall Street Borrowed From The Fed During Crisis?

After months of litigation and an act of Congress, Bloomberg has an exclusive on the massive lending by the Federal Reserve to Wall Street banks during the height of the financial crisis in 2008. On top of the $160 billion in loans from the Treasury Department, banks — including those based overseas — borrowed $669 billion from the Fed, with the Fed's peak balance at one point reaching a staggering $1.2 trillion. According to Bloomberg, the $1.2 trillion is about the same amount as homeowners owe on 6.5 million delinquent mortgages, three-times the size of the federal deficit in 2008, and more than the total earnings of federally insured banks in the last decade. The Fed had refused to disclose the specific sums it lent to the banks in 2008 — but was compelled to by the Dodd-Frank regulatory reform law. The leaderboard (via Bloomberg): Morgan Stanley — $107.3 billion Citigroup — $99.5 billion Bank of America — $91.4 billion UBS — $77.2 billion Goldman Sachs —$69 billion Deutsche Bank — $66 billion Barclays — $64.9 billion JP Morgan Chase — $48 billion Hypo Real Estate Holding — $28.7 billion Societe Generale — $17.4 billion

1 Comments in Response to

Comment by David Jackson
Entered on:

   Who's surprised? Are you surprised? I'm not surprised!

    I still say the money should have gone to the homeowners. They could give it to the banks. And...surprise! They could save their homes, maintain their credit, keep the bank "solvent", and live happily. That's not the way it works, you say?

    Oh, yea...The banks get the houses and whatever equity might have accrued AND they get their money. How can any business go wrong with the President and Congress on the Board Of Directors?

    Can I hear a KMA?

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