Black People : Fed Reserve, again found elbow deep in the cesspool

Discussion in 'Black People Open Forum' started by Ankhur, Apr 3, 2010.

  1. Ankhur

    Ankhur Well-Known Member MEMBER

    Oct 4, 2009
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    owner of various real estate concerns
    +3,005 / -0
    Thursday, April 1. 2010
    Posted by Karl Denninger in Federal Reserve at 15:39

    The Fed Admits To Breaking The Law
    Now how long will it be before something is done about it?

    April 1 (Bloomberg) -- After months of litigation and political scrutiny, the Federal Reserve yesterday ended a policy of secrecy over its Bear Stearns Cos. bailout.

    In a 4:30 p.m. announcement in a week of congressional recess and religious holidays, the central bank released details of securities bought to aid Bear Stearns’s takeover by JPMorgan Chase & Co. Bloomberg News sued the Fed for that information.

    The problem is this: The Fed is not authorized to BUY anything other than those securities that have the full faith and credit of The United States.

    In addition Ben Bernanke has repeatedly claimed that these deals would not cost anyone money. But the current value looks differently:

    Assets in Maiden Lane II totaled $34.8 billion, according to the Fed, which set their current market value in its weekly balance sheet at $15.3 billion. That means Maiden Lane II assets are worth 44 cents on the dollar, or 44 percent of their face value, according to the Fed.

    Maiden Lane III, which has $56 billion of assets at face value, is worth $22.1 billion, or 39 cents on the dollar, according to the Fed’s weekly balance sheet. A similar calculation for the Bear Stearns portfolio couldn’t be made because of outstanding derivatives trades.

    full article;