The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.” It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year. … Bankers didn’t disclose the extent of their borrowing. On Nov. 26, 2008, then-Bank of America BAC Corp. Chief Executive Officer Kenneth D. Lewis wrote to shareholders that he headed “one of the strongest and most stable major banks in the world.” He didn’t say that his Charlotte, North Carolina-based firm owed the central bank $86 billion that day.
Blogs I Follow
- TESS, the Transiting Exoplanet Survey Satellite, was launched into orbit today
- What students learning R in Econ 41-42 can aspire to…
- Understatement of the year of housing in California
- Housing bill SB 287 defeated in committee in California
- Ha Jin’s War Trash upends everything economists thought they knew about war and conflict
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