Tuesday, November 11, 2008

Fed Refuses to List Banks Drawing $2T in Federal Loans

A new controversy has erupted over the Bush administration’s refusal to identify banks on the receiving end of almost $2 trillion in taxpayer loans. The Bloomberg news company has sued the Federal Reserve to release a list of borrowing banks and the troubled assets they’re putting up as collateral. The Fed says it won’t release the list to avoid financial panic. The bank loans have come outside of the $700 billion Wall Street bailout package and don’t require congressional approval. The loans were made under the auspices of eleven different government programs. Eight of them have been created in the past fifteen months.


No comments: