The Real Housewives of Wall Street: Last December, the Federal Reserve reluctantly agreed to release details of a crisis emergency loan program of $3.3trn in which foreign banks were among the biggest beneficiaries and this week, Rolling Stone magazine reported on a curious series of loans amounting to over $220m.
The author of the Rolling Stone article is Matt Taibbi who won fame last year for a colourful article on Goldman Sachs, the investment bank: "The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who's Who of Goldman Sachs graduates."
The Fed had provided
details of more than 21,000 transactions with banks under several programs
dating from 2007, including the Term Auction Facility (TAF).
In his latest article, Matt Taibbi, relied on information passed to him by the office of the socialist and independent US senator, Bernie Sanders of Vermont.
The reporter says if you want to get a true sense of what the "shadow
budget" is all about, all you have to do is look closely at the taxpayer
money handed over to a single company that goes by a seemingly innocuous name:
Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all
that huge - - just nine loans totaling some $220m, made through a Fed bailout
program. That doesn't seem like a whole lot, considering that Goldman Sachs
alone received roughly $800bn in loans from the Fed. But upon closer inspection,
Waterfall TALF (Term Asset-Backed Securities Loan Facility) Opportunity boasts a
couple of interesting names among its chief investors: Christy Mack and Susan
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