Big Wall Street investment companies are taking advantage of the Federal Reserve’s unprecedented offer to secure emergency loans, the central bank reported Thursday.
The lending is part of a major effort by the Fed to help a financial system in danger of freezing.
Those large firms averaged $13.4 billion in daily borrowing over the past week from the new lending facility. The report does not identify the borrowers.
The Fed, in a bold move Sunday, agreed for the first time to let big investment houses get emergency loans directly from the central bank. This mechanism, similar to one available for commercial banks for years, got under way Monday and will continue for at least six months. It was the broadest use of the Fed’s lending authority since the 1930s.
Goldman Sachs, Lehman Brothers and Morgan Stanley said Wednesday they had begun to test the new lending mechanism.
On Wednesday alone, lending reached $28.8 billion, according to the Fed report.
» Breaking News
Gianna Michaels [Breaking Beauty]
6 Minnesota Teens - Including Brianna Broitzman & Ashton Larson - Accused Of Abusing Nursing Home Residents
After Gun Shot, Plaxico Burress Suspended By Giants For Rest Of Season
Florida Man Thomas Edward Lackie Arrested For Attacking Dad With Christmas Tree
Soldiers Join Military To Avoid Weak Economy
Goldman Sachs, Lehman Brothers and Morgan Stanley said Wednesday they had begun to test the new lending mechanism.
I’m not even sure what that means. When I “test” our systems, I hook into non-production environments. Nothing happens in the “real world”.
Are they only pretending to borrow money just to see how it works?
The report does not identify the borrowers.
I believe that was part of the deal. They got our money but we didn’t get to know who was getting it.
I have to warn you that this comment is off topic but CNN did a report on Jeremiah Wright bring up some additional quotes from a newsletter. Now some appear to be anti-semitic, but the reason I am writing this is because I am convinced that they want to tear this man down. These guys are on a fishing expedition to get this guy. I think we need to be vigilant regarding this matter because the media are trying to stir the pot.
“I believe that was part of the deal. They got our money but we didn’t get to know who was getting it.”
What a deal. How could the tax payers complain about that?
And they scream about welfare for sick and needy people. Christians suck. Republican Christians, that is.
That does the Federal Reserve’s move have to do with Christians? You’d be hard pressed to make a more asinine statement.
That being said, I find it amusing that liberals are suddenly concerned how their tax dollars are spent. Meanwhile, they’re clamoring to undo the Bush tax cuts and for what? To spend more tax dollars.
Unlike general spending, where the money is here today and gone tomorrow, the firms getting this money pay interest and when it is lent to consumers, they will pay interest. This move was made by the Fed to free up more credit for consumers and small business. Is that supposed to be a bad thing?
Jay, we are clamoring to undo the Bush tax cuts to pay for the things we are buying on credit. Hopefully, you don’t run your personal finances like the Republicans run the country.
It’s the nature of Humanity: when “free” stuff is offered, people take it whether they need it or not. Something to keep in mind once the inevitable Health Care debate rolls around…
How provocative Farris. Would that “free stuff” include a lack of oversight and accountability about prescription drug prices in Medicare?
Yea, they are getting this money to HELP the American consumer. Sure…..
Hopefully, you don’t run your personal finances like the Republicans run the country.
You know, I’ve been trying that with my credit card bills, but for some reason, the CC company is not very receptive. I keep telling them my kids will pay it eventually, but they don’t want to hear it.
Republican voters should be ashamed of themselves for letting our economy get looted for their fear of gays and abortion
Hmmm… My good friend works at Lehman Brothers, I’ll have to ask if he has any insight on this issue. On its face it appears to be more of the same crap:”Capitalism good, socialism bad…except when it help out good capitalism…uh brain hurt.”
Jay: “the firms getting this money pay interest and when it is lent to consumers, they will pay interest”
And which firms are those, Jay? Did you miss the part where it says “The report does not identify the borrowers.”?
If this is such a good thing they are doing, why are they doing it in secret?
Hmmm… didn’t know the Fed Reserve’s actions were partisan or Republican. It would seem that HRC & Obama were both pleased with Bernanke’s actions. In fact, most free market capitalists would say that the bailout of BSC was wrong (see the WSJ editorial page for more).
In fact, HRC & Obama (with Frank & Dodd) are both calling for a bailout of not only borrowers (aka flippers, speculators, and unqualified borrowers alike), but also a bailout of the lenders.
Free market capitalists are loathe to see such interventions. Why this is “Republican” economics, I don’t know. That you are ignorant of the real actors calling for a bailout is a shame
Sean, all it takes is a little searching around to see who has been doing the borrowing. I easily found that Goldman Sachs, Lehman Brothers and Morgan Stanley were some of the firms that borrowed. The Fed doesn’t release such information, but the firms are not doing much to keep it a big secret.
In addition, the money the fed uses in these situations is not something that is allocated from Congress, but rather from interest earned on its own portfolio of securities.
“That being said, I find it amusing that liberals are suddenly concerned how their tax dollars are spent.”
Yes, Jay, as a liberal I don’t care how the government spends our tax dollars. Just so long as they spend it. A giant tower of marshmallow bunnies in Arizona for $600 million (most of that going to 24/7 air conditioning to cool the tower and protect it from melting)? Sure why the fuck not. The government is supposed to spend money. Who cares for what!
You wonder why people respond to you with such disdain. Perhaps it’s your dependence on right wing-constructed cliches and stereotypes for your amusement. Sheesh.
You wonder why people respond to you with such disdain. Perhaps it’s your dependence on right wing-constructed cliches and stereotypes for your amusement. Sheesh.
Fafaroo, give it a rest. I wouldn’t live long enough to count the number of broad brush, over the top, asinine wisecracks left wingers on this blog make about Republicans and conservatives.
In other words, “Lighten up, Francis.”
fafaroo, two things: 1) LOL, and 2) Well put.
“In other words…”
No, in other words, you just got your ass handed to you. Run away and pretend it never happened.