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So... where did the $700 billion go? Did that fix the magneto trouble?
"I wondered the same thing," he said (from memory). "It was amazing to me that no one knew. We gave it to the banks. But no one knew what they did with it. I proposed to Tim Geithner that we find out. He was outraged. He cursed me out, using the F-word. He said it would bring the whole banking system down, if I asked.
"I went ahead and sent out a letter. I didn't really have the authority or the staff to insist. But all of the big banks wrote back. And most of them gave me dodgy responses or gave me the brush-off.
"What did they do with the money? They were supposed to increase lending to help bring about a recovery. None of them did that. Instead, they used it to repay each other's loans. In other words, they used it to reduce the amount of credit available... not increase it. And they bought US agency bonds... just as you'd expect. And they paid out their bonuses.
"In other words, they looked out for themselves... just as you'd expect. I didn't know this information was going to bring down the banking system... Full story...
Related posts:
So... where did the $700 billion go? Did that fix the magneto trouble?
"I wondered the same thing," he said (from memory). "It was amazing to me that no one knew. We gave it to the banks. But no one knew what they did with it. I proposed to Tim Geithner that we find out. He was outraged. He cursed me out, using the F-word. He said it would bring the whole banking system down, if I asked.
"I went ahead and sent out a letter. I didn't really have the authority or the staff to insist. But all of the big banks wrote back. And most of them gave me dodgy responses or gave me the brush-off.
"What did they do with the money? They were supposed to increase lending to help bring about a recovery. None of them did that. Instead, they used it to repay each other's loans. In other words, they used it to reduce the amount of credit available... not increase it. And they bought US agency bonds... just as you'd expect. And they paid out their bonuses.
"In other words, they looked out for themselves... just as you'd expect. I didn't know this information was going to bring down the banking system... Full story...
Related posts:
- How the bank bailouts screwed the American taxpayer...
- Wall Street bankers to pocket record-breaking $144 BILLION in pay and bonuses...
- Top bailed-out banks to pay $30 billion in bonuses...
- Barclays announces £38.5m bonuses on budget day...
- Goldman Sachs to pay its bankers a whopping $16billion in bonuses!!!
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