Tomorrow, the Fed will begrudgingly release documents that may reveal which banks would have failed without a bailout.
Ever since the Fed bailout in 2008, the public has only known that nearly every major US bank was bailed out. But of course that's because the Fed shielded us from the knowledge of which banks actually needed a bailout.
A little background: In 2008, the Fed is said to have loaned to banks that didn't need bailouts in order to remove the stigma of being insolvent from the banks that needed one, which could have rendered the bailouts worthless.
The Feds didn't want it to be one group of "insolvent, very risky" banks versus one group of "solvent, solid" banks.
The documents released tomorrow may distinguish one group from the other.
So it's no surprise that after Bloomberg's Mark Pittman requested the forms back in 2008 (before he died in 2009) as part of the freedom of Information Act, the Federal Reserve Board appealed to the court to avoid releasing the requested information.
Here's what we'l find out:
The amount of assistance each entity received
The terms under which funds were disbursed
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