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Secret Fed Loans Gave Banks Undisclosed $7.7 Trillion!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Secret Fed Loans Gave Banks Undisclosed $7.7 Trillion Secret Fed Loans Gave Banks Undisclosed $13B
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By Bob Ivry, Bradley Keoun and Phil Kuntz - Nov 27, 2011 5:01 PM MT
Bloomberg Markets Magazine


Kenneth D. Lewis Former CEO of Bank of America Corp.

On Nov. 26, 2008, then-Bank of America 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 firm owed the central bank $86 billion that day. Photo: Joshua Roberts/Bloomberg

The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring inv…