Fed Report Reveals Multi-Trillion-Dollar ‘Shadow Bailout’

‘The US Federal Reserve on Wednesday posted details of its multi-trillion-dollar “shadow bailout” programs, showing that nearly every major US financial institution benefited from billions in unreported government loans.

The data from 21,000 Fed transactions carried out between December 2007 and July 2010 involves eleven special lending facilities set up by the US central bank at the height of the financial crisis to funnel trillions of dollars into large financial companies. The money was lent at close to zero interest with no strings attached. The banks and corporations on the receiving end of the massive bailout were not required to even report what they did with the government cash.

The vast scale of the bailout underscores the fraud of the endless claims that “there is no money” for jobs, mortgage relief or even extended unemployment benefits. The publication of the Fed data simultaneously with the refusal of Congress to extend long-term jobless benefits, Obama’s pay freeze for federal workers and the preparations to extend the Bush tax cuts for the rich while slashing social programs and tax benefits for the working class, highlights the naked class interests pursued by the government and both big business parties.’

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