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Fed To Announce Details Of $3.3 Trillion Bank Bailout Package At Noon

Tyler Durden's picture




 

One part of Mark Pittman's legacy is about to come to fruition. At noon today, the Fed will provide an information dump identifying recipients of $3.3
trillion in emergency aid which it dispensed as per its interpretation of its mandate following the Lehman collapse. From Bloomberg: "The data will probably show the magnitude of central bank support to companies including Bank of America Corp. and General Electric Co. after the collapse of Lehman Brothers Holdings Inc. spurred a surge in private borrowing costs. Lawmakers demanded disclosure after the Fed approved aid dwarfing the federal government’s $700 billion Troubled Asset Relief Program." Not all data will be available, however: all important discount window information will not be included as part of this package: "Congress excluded one Fed program from disclosure, the discount window, which is the subject of a 2008 lawsuit filed by Bloomberg LP, parent of Bloomberg News, against the central bank. A group of banks is appealing to the Supreme Court over lower-court decisions ordering the Fed to identify loan recipients. The program peaked at $110.7 billion in October 2008."  Since today’s information relates to aid from Dec. 1, 2007,
through July 21, 2010, there will be enough information to satisfy the most detail-oriented forensic reverse engineers.

More from Bloomberg:

“We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government,” Senator Bernard Sanders, the Vermont Independent who wrote the provision on Fed disclosure, said to reporters Nov. 17.

U.S. central bankers stepped outside of their traditional role as a lender of last resort to banks as credit markets nearly ground to a halt in the wake of Lehman’s bankruptcy on Sept. 15, 2008. Bernanke pushed the boundaries of the Fed’s powers, using section 13(3) of the Federal Reserve Act, which allowed the central bank to aid non-banks under “unusual and exigent circumstances.”

No matter how this is spun it will not be beneficial to banks, as it will merely reinforce public anger as the media circuit discusses how the public provided $3.3 trillion in aid to a banking system which as we reported previously is about to experience another surging bonus season.

 

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Wed, 12/01/2010 - 10:06 | 767492 johngaltfla
johngaltfla's picture

Which makes sense as to why the futures are in rally mode. I'll bet they have their entire PD network buying options and SPY futures hand over fist. Pump up the good news of the markets to cover up the bad news in this report...

Wed, 12/01/2010 - 11:02 | 767663 Fish Gone Bad
Fish Gone Bad's picture

+1

Wed, 12/01/2010 - 11:15 | 767698 unwashedmass
unwashedmass's picture

 

you know....the peasants were never supposed to see this.

so...because the government let Ben down and is forcing the reveal....he's not to blame.

yeah, yeah, they stole three trillion bucks (much more truthfully).....but its not Ben's fault cause no peasant was ever supposed to see this stuff.....

 

Wed, 12/01/2010 - 11:04 | 767669 Fish Gone Bad
Fish Gone Bad's picture

+1

Wed, 12/01/2010 - 10:06 | 767493 SheepDog-One
SheepDog-One's picture

Public anger? Skynet does not compute such data.

Wed, 12/01/2010 - 10:26 | 767557 Mark Medinnus
Mark Medinnus's picture

TSA is groping the crotch of my Public Anger.  Et tu, pupae?

Wed, 12/01/2010 - 10:27 | 767561 Mark Medinnus
Mark Medinnus's picture

TSA is groping the crotch of my Public Anger.  Et tu, pupae?

Wed, 12/01/2010 - 10:14 | 767494 Oh regional Indian
Oh regional Indian's picture

Why do I get a wiki-leak like feeling here?

Massaged data does not make truth. Selective disclosure only increases mystery.

Sham!

ORI

http://aadivaahan.wordpress.com/2010/12/01/of-leaking-wikis-and-true-lies/

Wed, 12/01/2010 - 10:26 | 767559 Battleaxe
Battleaxe's picture

Don't expect any truth. As with wikileaks, anyone divulging the truth will be prosecuted with the full force of the law!

Wed, 12/01/2010 - 10:52 | 767640 Sudden Debt
Sudden Debt's picture

YOU SIR ARE ON A NEED TO KNOW BASIS!!

 

JUST LIKE THE 99.9999999999999999999999999999999999999999999999999% OF THE REST OF THE POPULATION!

Wed, 12/01/2010 - 10:08 | 767500 the not so migh...
the not so mighty maximiza's picture

." Not all data will be available, however: all important discount window information will not be included as part of this package: "

 

Thats where the bodies lay

Wed, 12/01/2010 - 10:19 | 767533 Mad Mad Woman
Mad Mad Woman's picture

You are so right. Are there any hackers out there who can find this info out for us?  :-)

Wed, 12/01/2010 - 10:21 | 767541 the not so migh...
the not so mighty maximiza's picture

I am sure the information is on non-networked computers if at all.

Wed, 12/01/2010 - 11:35 | 767765 B9K9
B9K9's picture

You guys are funny. I keep telling you that all this information was tapped, stolen & acquired long ago by the respective intelligence agencies, both foreign and domestic.

The reason they don't divulge their caches is very simple: they currently benefit from the existing monetary regime. Who do you think pays their salaries, buys all their fancy toys, and basically lets them have a pretty good time, all on someone else's dime?

No, nothing is going to happen until a crack appears that divorces the ying/yang symetry. That crack is reduced per capita net energy consumption. Like no tickie:no washie, no energy consumption growth, no economic growth. No economic growth, no ability to service the Ponzi.

Everything has been directed towards kicking the can until a miracle appears. No miracle, then all deals are off as the MIC executes Plan 9 to protect & preserve the interests of the US empire. (And please don't confuse these with anything approaching national defense.)

Wed, 12/01/2010 - 10:22 | 767544 Turd Ferguson
Turd Ferguson's picture

EXACTLY!

They'll never release DW info because it would be a Full Ponzi Exposition! Not gonna happen.

Wed, 12/01/2010 - 11:18 | 767704 Kaiser Sousa
Kaiser Sousa's picture

Turd -

love ur sight and insghts...enjoy the takedown of both metals this morning right at the open n NY??? how obivious does it get....Cheers

Wed, 12/01/2010 - 11:40 | 767807 Joe Davola
Joe Davola's picture

the Federal Reserve will publicly disclose the following information, generally about two years after a discount window loan is extended

 

 

http://www.frbdiscountwindow.org/DWdisclosure_08062010.cfm?hdrID=14&dtlI...

 

Dodd-Frank the antonym of Glass-Steagall

Wed, 12/01/2010 - 10:08 | 767501 youngman
youngman's picture

Eat something sweet for lunch...as you are probably going to puke it up after this is released...

Wed, 12/01/2010 - 10:09 | 767503 Eternal Student
Eternal Student's picture

I was wondering what they were going to do to cheapen the dollar, now that those pesky Europeans have managed to undercut us.

But $3.3 Trillion? Wow. I didn't think Bernake was that desperate or dumb. Amazing.

Wed, 12/01/2010 - 10:57 | 767651 MarketTruth
MarketTruth's picture

Yet remember, that is $3.3 trillion and perhaps used to fractionally reserve and thus multiply it by at least a factor of 9 perhaps.

Of course Bernanke wants a ZERO RESERVE system:

"Given the very high level of reserve balances currently in the banking system, the Federal Reserve has ample time to consider the best long-run framework for policy implementation. The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system" -- Federal Reserve February 10, 2010

www.federalreserve.gov/newsevents/testimony/bernanke20100210a.htm#fn9

Wed, 12/01/2010 - 10:09 | 767504 Cognitive Dissonance
Cognitive Dissonance's picture

At noon today, the Fed will provide an information dump identifying recipients of $3.3 trillion in emergency aid which it dispensed as per.......its......interpretation of its mandate following the Lehman collapse.

The most important part of the spin factor is controlling the conversation. By releasing what they wish to release, they will control what is discussed.

As I always say, what's not said is often much more important than what is said. They want us to concentrate on what they are saying. Thus they control the questions and by extension the answers. Don't fall into this trap.

Wed, 12/01/2010 - 10:17 | 767526 SheepDog-One
SheepDog-One's picture

Bernanke just needed something to tank the dollar, pesky falling Euro was strengthening it too much. Wealth effect must happen.

Wed, 12/01/2010 - 10:48 | 767629 Oh regional Indian
Oh regional Indian's picture

SDO, if they tank the dollar, they spike gold/silver.

Are you saying the FED is on our side now? Or is there a counter-counter play?

ORI

Wed, 12/01/2010 - 10:10 | 767505 dojiman
dojiman's picture

more lawsuits coming, trial lawyers and retired judges need new Bently's,

 

Wed, 12/01/2010 - 10:10 | 767507 Xibalba
Xibalba's picture

Fed trying to get in front of Wiki?

Wed, 12/01/2010 - 10:10 | 767508 TheSettler
TheSettler's picture

E-mail these Guy's and let them know that thr fed is not a Govt agency, I did.

slanman@bloomberg.net; Craig Torres in Washington at ctorres3@bloomberg.net.

Editor  cwellisz@bloomberg.net.

Wed, 12/01/2010 - 10:13 | 767510 andy55
andy55's picture

TD, typo in the last para:  3.3 billion -> trillion

Guess we've all gotten used to using the word 'billion' lately...  I anticipate that we'll see 'trillion' much more in the coming months.

Wed, 12/01/2010 - 10:12 | 767514 unwashedmass
unwashedmass's picture

 

...wait till we all see how much Ben has printed up and handed to BAC.....

that will be the end...he will never get another bailout for them, and the stock will crater....

its over.

Wed, 12/01/2010 - 10:13 | 767516 detersbb
detersbb's picture

If the fed borrowed the money $3.3 trillion over and beyond the $700 billion congress authorizied are the US Taxpayers expected to foot the bill on what was authorized by neither the CON-gress nor the citizens?  If the number of $3.3 trillion is thrown out there how much more was given on top of what is being admitted here?  CNBC talked $13.7 trillion about  a year ago.

 

At what point can the people dissove the government and form a new one that will serve the people?

 

At what point can the people outlaw the creation of credit or forgive the repayment thereof?

 

At what point can the people have a say what happens to them, rather than being told what is going to happen to them by the people elected by them to be their PUBLIC SERVANTS.

Wed, 12/01/2010 - 11:19 | 767710 goldsaver
goldsaver's picture


At what point can the people dissove the government and form a new one that will serve the people?

 

At what point can the people outlaw the creation of credit or forgive the repayment thereof?

 

At what point can the people have a say what happens to them, rather than being told what is going to happen to them by the people elected by them to be their PUBLIC SERVANTS

Ahhm, only when they are willing to take arms. Good luck with that one here in the US. Revolutions cut into DWTS and Fear Factor time. Of course, if you let people know they can always TiVO them....

Wed, 12/01/2010 - 10:14 | 767519 Duuude
Duuude's picture

"...there will be enough information to satisfy the most detail-oriented forensic reverse engineers..."

"Yes Officer Obie,I cannot tell a lie, I buried that piece of paper underneath a half a ton of garbage."

Wed, 12/01/2010 - 10:14 | 767521 IL Finanziario
IL Finanziario's picture

THE GLOBAL CRIDIT CRISIS IS JUST LIKE A FUNNY SCARY MOVIE

http://ilfinanziario.blogspot.com/2010/11/global-debt-crisis-is-just-like-funny.html

THX ZERO HEDGE... YOU ARE GREAT!!!

Wed, 12/01/2010 - 10:15 | 767522 sumo
sumo's picture

All I want for Christmas is a Wiki-mega-leak from the Fed. And silver bullion.

 

Wed, 12/01/2010 - 10:19 | 767531 curbyourrisk
curbyourrisk's picture

Maybe Julian Asage can get his hands on the Discount Window information.  FUCK THE BANKS!!!!

Wed, 12/01/2010 - 10:20 | 767535 David99
David99's picture
China is going to increase interest rates by 0.25 basis points during the weekend"
Wed, 12/01/2010 - 10:21 | 767537 waylon153
waylon153's picture

Clearly the Fed hit a home run by avoiding a systemic failure and ended up with no (1) failures.  They magically turned an incredibly bad situation into a perfectly normal market.  And, who knows, maybe they were doing God's work....

This should be interesting to see how the Fed responds to these pesky requests by commoners.  Maybe something along the lines of, "Nothing to see here, move along"?

Wed, 12/01/2010 - 10:25 | 767551 the not so migh...
the not so mighty maximiza's picture

They did hit a home run but we are only in the third inning.   The debt created to patch up the issue will still come due again and will have compounded interest added on.

Wed, 12/01/2010 - 10:28 | 767567 waylon153
waylon153's picture

Sorry about that.  Forgot to hit. this. button. here. <sarcasm/off>

Wed, 12/01/2010 - 10:25 | 767555 Turd Ferguson
Turd Ferguson's picture

"Clearly the Fed hit a home run by avoiding a systemic failure and ended up with no (1) failures.  They magically turned an incredibly bad situation into a perfectly normal market"

Waylon, buddy, going from there to here is slightly more complicated than you imply. The Fed deserves credit only for making things even worse when it finally all ends.


Wed, 12/01/2010 - 10:54 | 767645 Rodent Freikorps
Rodent Freikorps's picture

"Shut up," they explained.

Wed, 12/01/2010 - 10:21 | 767539 Mad Mad Woman
Mad Mad Woman's picture

Wish I was computer savvy enough to hack. Damn!

Wed, 12/01/2010 - 10:21 | 767542 Boilermaker
Boilermaker's picture

Crash pad is being put into place...how unusual.

Wed, 12/01/2010 - 10:25 | 767546 Ripped Chunk
Ripped Chunk's picture

Another $3 trillion that will never be lent out and used to prop up the market? Or are these "credits" already in the banking system?

Insanity either way.

Wed, 12/01/2010 - 10:36 | 767597 SWRichmond
SWRichmond's picture

http://seekingalpha.com/article/162995-defaulting-in-plain-sight

 

Other than default, how else can you characterize $24 trillion in Fed and U.S. Treasury economic backstopping? Remember, this is in the U.S. alone. Had this backstopping, equivalent to 1.5 times U.S. GDP, not been set in place, the economy of the world would have collapsed.

Question: is this $24 trillion in new currency, $24 trillion in new debt, or something else? Is it a promise? Does it exist only in our minds, perhaps only in our hopes? Is it a lie, or is it true? Remember, had it not been done (so they say), we'd be riding bicycles and cooking rats over burning automobiles. So does it exist, or doesn't it?

So, I wish to revisit the $24 trillion. Do any of you honestly believe they wouldn't print it if they had to? Are we reduced to merely arguing whether or not it will be necessary? In my opinion an argument can be made that they've already printed it, merely by suggesting they would do so if they had to. By their admission, it was urgently necessary for them to announce its possible creation; again, does it exist or doesn't it?

If it exists, the currency has been debased; if it doesn't, then break out the bicycles. Mass realization of this fact has been stalled by a massive misinformation campaign and massive vested interest in the status quo. Which financial players (bankers, economists, accountants, politicians, central banks, etc) are willing to go to bat for reality?

The answer is the same as to the question of who is willing to step outside the two-party political paradigm: almost no one. They all earn their living from the (old) system. They can be counted on to continue supporting the lie.

Wed, 12/01/2010 - 11:31 | 767760 Kayman
Kayman's picture

The Bernank buys up the used toilet paper from Blankfeins bathroom; Lloyd takes the (electronic) money so that his balance sheet appears whole and his creditors don't call his loans.

Lloyd declares bonuses all around. After all, these guys masterminded the greatest theft in history. Why wouldn't they declare bonuses from the ill-gotten loot ?

Wed, 12/01/2010 - 10:24 | 767547 David99
David99's picture
Under what authority FED gifts trillions of dollars to Fraud Street gang. Where in the Constitution it is wriiten that Fraud Street gang will get trillions of dollars gift from FED every month and Main Street will pay the taxes and daily bailouts via POMO?"
Wed, 12/01/2010 - 10:38 | 767601 gwar5
gwar5's picture

Via bond-flipping POMOs, looks like taxpayers will end up with worthless bonds while the usual suspects will own the entire S&P 500. 

Wed, 12/01/2010 - 10:25 | 767554 David99
David99's picture
How come 300 million Americans are sitting silent when trillions of dollars are being gifted to Fraud Street gang every month?"
Wed, 12/01/2010 - 10:26 | 767558 Turd Ferguson
Turd Ferguson's picture

Because, so far, only about 12,263 Americans have figured it out.

Wed, 12/01/2010 - 10:31 | 767578 Cognitive Dissonance
Cognitive Dissonance's picture

12,264

I signed up last week. :>)

Wed, 12/01/2010 - 10:32 | 767582 Vergeltung
Vergeltung's picture

signed up for what? do tell.

Wed, 12/01/2010 - 10:38 | 767598 SWRichmond
Wed, 12/01/2010 - 10:48 | 767626 Vergeltung
Vergeltung's picture

gotcha. I have already done 3 Appleseed events, they are really great weekends. good folks at those things.

Wed, 12/01/2010 - 10:32 | 767583 Mark Medinnus
Mark Medinnus's picture

Any relation to Maynard Ferguson?

Wed, 12/01/2010 - 10:27 | 767560 Turd Ferguson
Turd Ferguson's picture

Because, so far, only about 12,263 Americans have figured it out.

Wed, 12/01/2010 - 10:31 | 767580 Vergeltung
Vergeltung's picture

THAT, is the pertinent question Dave. something to do with bread & circuses, I imagine....

Wed, 12/01/2010 - 10:37 | 767595 Dr. Engali
Dr. Engali's picture

Because they are lazy fucks too concerned about dancing with the stars. They won't figure it out until there isn't a bag of chips for them to reach over and grab as they flip through the channels with the remote.

Wed, 12/01/2010 - 10:54 | 767646 Whatta
Whatta's picture

How come 300 million Americans are sitting silent when trillions of dollars are being gifted to Fraud Street gang every month?"

 

cuz Perky Katie Couric didn't tell me to be outraged, and I have to buy iShit for everyone I know for Xmas, and Oh That Julian and his traitorous misdeeds, and it is ALMOST College Bowl time, and I have to find new outfits for Xmas parties, and, By Golly I have already been mad about those bonuses LAST YEAR...do I need to do that again?

Wed, 12/01/2010 - 10:58 | 767653 gwar5
gwar5's picture

My friends get it. I tell others, few listen. Overcoming the MSM propaganda is difficult. 

They see only spotty reports of unrest in Europe but aren't told the underlying reasons.

If they still have a job they're in denial it's coming here. Clock is ticking.

Wed, 12/01/2010 - 11:35 | 767784 Kayman
Kayman's picture

Why silence ? CNBS (GE), CNN, FOX... all beholden to the banksters. 

How about too scared to look at it... 

Wed, 12/01/2010 - 10:27 | 767562 DavidC
DavidC's picture

Well, the markets appear to be expecting something good, given the moves overnight, here in the UK this morning and Dow holding around 11150 and S&P heading for 1200.

Maybe I'm missing something - maybe everything really IS improving...

DavidC

Wed, 12/01/2010 - 10:43 | 767614 gwar5
gwar5's picture

Our fake USDs are being used as Viagra to keep the markets up.

Wed, 12/01/2010 - 10:28 | 767568 gwar5
gwar5's picture

The unelected, unaccountable Fed is running our crony country. They put the dick in dictate.

Wed, 12/01/2010 - 10:30 | 767575 David99
David99's picture

FED is the biggest criminal organization in the world.

Thousands of individual traders lost trillions because without any knowledge to public it pumps trillions via PD 's on daily basis. This is purely criminal act.

Wed, 12/01/2010 - 10:37 | 767599 the not so migh...
the not so mighty maximiza's picture

It really is a form of money laundering.

Wed, 12/01/2010 - 10:34 | 767588 Ludic Fallacy
Ludic Fallacy's picture

What if the powerful U.S. Bank Assange referred to wasn't Bank of America, or Goldman Sachs, but rather, the Federal Reserve.  Dont' forget, he's a libertarian.  And the Fed is a private bank.  If you read his interview based on this premise, it makes much more sense that it would be a Fed document dump, rather than BoA.

Wed, 12/01/2010 - 11:00 | 767660 Turd Ferguson
Turd Ferguson's picture

Oh, Ludic, don't tease me like that. Please be right.

Wed, 12/01/2010 - 11:24 | 767725 Kaiser Sousa
Kaiser Sousa's picture

think about thought Turd...the fraudulent DJIA goes thru the roof n before open trading and continues higher into NY...both metals where tracing the equities until they they entered NY...ive seen that pattern many times when something negative about the equity markets is due to be released....

Wed, 12/01/2010 - 11:28 | 767744 goldsaver
goldsaver's picture

As much as I would love that to be the case, there is a 2009 interview with JA where he says he has 5Gb worth of data from a senior BAC executive. TPTB already released, thru their media lapdogs, that it is BAC as a form of damage control.

Wed, 12/01/2010 - 10:34 | 767589 flacon
flacon's picture

JP Morgan needs more $$$$ for their naked shorts. 

Wed, 12/01/2010 - 10:41 | 767610 SheepDog-One
SheepDog-One's picture

China counters with .5% rate increase later today, touche.

Wed, 12/01/2010 - 10:43 | 767616 tallystick
tallystick's picture

Haha, it really wasn't that bad, rally on! not

 

This is a  gift to -ES

 

 

Wed, 12/01/2010 - 10:48 | 767628 waylon153
waylon153's picture

+200 on the Dow out of the gate?  What a ramp job!  Somebody's nervous...

Wed, 12/01/2010 - 10:56 | 767649 ZeroPower
ZeroPower's picture

Actually im hearing bonuses arent gonna be the 100%+ they were in '09..

Depending on your {groups} actual revenue to company, im assuming theyll be in the 50-80% range this year.

Wed, 12/01/2010 - 11:13 | 767691 Joe Davola
Joe Davola's picture

Is that violins I hear?

Wed, 12/01/2010 - 11:06 | 767675 Milton Waddams
Milton Waddams's picture

3.3? LMAO

"The truth is always hidden in plain sight"

Wed, 12/01/2010 - 11:12 | 767689 TruthInSunshine
TruthInSunshine's picture

I will await this treasure trove of highly redacted and probably outright misleading documents with baited breath.

 

 

Not.

Wed, 12/01/2010 - 11:14 | 767694 Johnlaw2012
Johnlaw2012's picture

I Hope Ron Paul just audit the FED.

The FED is not helping Main Street.

Wall Street is Not the Main Street.

The FED are just printing money to buy debts. This is crazy.

What will happen when USD become Useless?

 

Wed, 12/01/2010 - 11:19 | 767711 jmc8888
jmc8888's picture

I think CD said it right on the other page, this window we're looking through, is the specific curtain and view the FED is revealing.

Still should be some shocking revelations in some form, but how much it brings down legally on others, I doubt if it's much.

I could see the fed filtering such info, because it's mandate, even in this, is for yada, yada and thus actually releasing info that might damage others, might damage the economy, and the fed doesn't want to shoot itself in its own foot.  I think they'll take that sort of sophistric nonsense approach of saving their own skins. 

But they're also idiots, so something will slip through, it seems to always be that way.

I'd like to know, what euro banks received bailouts? both direct and through other parties such; banks, insurance, other.

3.3 trillion, I wonder if they'll release all of that, or some of that.  Or the 3.3 trillion is subjective, that's all we know about??? Thus maybe they'll tell us this 3.3 trillion, but not the under the table stuff. 

You know you want Glass-Steagall

 

Wed, 12/01/2010 - 11:23 | 767722 TruthInSunshine
TruthInSunshine's picture

3.3 trillion is the biggest joke.

The Bernank & his cronies probably went through 3.3 trillion of hookers & blow.

Wed, 12/01/2010 - 11:23 | 767730 Problem Is
Problem Is's picture

$$$3.3 Trillion...
Buys a lot of pitch forks...

Wed, 12/01/2010 - 11:29 | 767748 max2205
max2205's picture

And the reasons they got the money have not changed/improved

Wed, 12/01/2010 - 12:18 | 768023 sabra1
sabra1's picture

guessing all of POMO will total 3.3T!!!

Wed, 12/01/2010 - 13:01 | 768264 Temporalist
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