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
- Key leader in the Burkina Faso tri-border area interviewed about… how to spend lots of money!
- Who would have thought in other countries there is also demand for protectionism? Ghana’s footwear manufacturing industry
- Recent reading and viewing recommendations
- Great quote from Teju Cole, “Every Day is for the Thief” about markets!
- A most disturbing finding about ethnicity in Kenya
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