WASHINGTON – Goldman Sachs, Lehman Brothers, and European banks RBS and UBS were the biggest beneficiaries of very short-term Federal Reserve loans extended at the height of the financial crisis, according to data released on Wednesday.
The details of the lending program were disclosed after a lengthy legal battle eventually won by Bloomberg News LLP. The data, available on the Fed’s website, showed Goldman took $15 billion in exchange for securities ranging from Treasuries to mortgage bonds. Swiss-based UBS AG (UBSN.VX), UK-based RBS Royal Bank of Scotland (RBS.L) and Lehman took $10 billion each.
The program worked as an emergency lending facility for large primary dealer banks that deal directly with the Fed.
It lengthened the window for so-called open market operations, overnight loans used by the central bank in the conduct of monetary policy, to as many as 28 days.
The facility was launched in March 2008, just as Bear Stearns was about to become the first major investment bank to require a rescue in what turned into the worst financial meltdown in modern history.
"They called Goodluck Jonathan, who gave you YouWIN and SURE-P, and PRESSID Scholarships clueless. So what do we call APC that gives you wheelbarrow? They said GEJ was tribalistic yet his NSA, CDS, IGP, CNS, CGP and minister of defense were from the North. So what do we say of President Muhammadu Buhari whose DG DSS is from his own hometown and whose Minister of Defense, Chief of Army Staff, Chief of Air Staff, NSA, IGP, CGP, CGI, CGP are all from his Northern Region? You see, no matter how far falsehood has travelled, it must eventually be overtaken by truth!"
-Reno Omokri(aide to Ex-President Goodluck Jonathan)
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