Congress Kept in the Dark About Massive Fed Bailouts | www.thepoliticus.com
source: http://thepoliticus.com/content/congress-kept-dark-about-massive-fed-bailouts
A major new report from Bloomberg, drawn from nearly 30,000 pages of Fed documents obtained via FOIA, sheds some new light on why Congress’ response to the too-big-to-fail problem in financial markets was legislation that allowed the biggest banks to grow even bigger. According to the report, the Federal Reserve and big banks worked in concert throughout the financial crisis to manipulate investors, regulators, and lawmakers by covering up trillions of dollars in Fed loans and guarantees while simultaneously lying about being healthy. As Bloomberg puts it: “While Fed officials say that almost all of the loans were repaid and there have been no losses, details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.”
