Bernanke to Hill: Flawed reporting on Fed loans - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Bernanke to Hill: Flawed reporting on Fed loans
Started:December 6th, 2011 (08:29 PM) by kbit Views / Replies:562 / 1
Last Reply:December 6th, 2011 (09:24 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Bernanke to Hill: Flawed reporting on Fed loans

Old December 6th, 2011, 08:29 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Bernanke to Hill: Flawed reporting on Fed loans

Dec 6 (Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday pushed back against reports that the Fed had lent banks $7.77 trillion or more during the financial crisis, saying they contained "egregious errors and mistakes."
Bloomberg Markets Magazine last month published an article called "Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress." The article was widely referenced by other news organizations, including The New York Times.

The Bloomberg article said the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system when all guarantees and lending limits were added up.

While Bernanke did not mention Bloomberg or any other news organization by name, he said in a letter to lawmakers that the figure and other estimates of larger total amounts of lending, were "wildly inaccurate." On any given day, Fed credit from its emergency liquidity programs was never more than about $1.5 trillion, he said.
"These articles ... have contained a variety of egregious errors and mistakes," Bernanke told the chairmen of the U.S. Senate Banking and House of Representatives Financial Services committees.

The Fed chair also disputed that the loans were secret or that lawmakers were kept in the dark, saying the central bank announced its emergency programs and reported information about them to Congress and the public.
"Congress was well informed of the volume of borrowing by large banks," he said.

Bernanke further took issue with the assertion that banks reaped an estimated $13 billion of income by taking advantage of the Fed's below-market rates. Firms availing themselves of credit from the central bank's programs had to pay penalty rates for emergency loans, he said.
"The rates that the Federal Reserve charged on its lending program did not provide a subsidy to borrowers," the Fed chair said.

Matthew Winkler, editor-in-chief of Bloomberg News, said in a statement: "Bloomberg stands by its reporting."
The news agency also released a lengthy point-by-point response to the Fed staff memo. here
The central bank in March was ordered by a court to divulge details on lending from its regular discount window during the crisis when it lost a legal battle initiated by Bloomberg LP, the parent of Bloomberg News, and News Corp's Fox News Network.

The Fed had strenuously resisted providing information about discount window borrowers, arguing that banks would be unwilling to use the lending facility if their actions risked becoming public out of fear they could be seen as weak.
When the data was released in March, it showed that banks from Europe had drawn tens of billions of dollars from the U.S. central bank during the crisis.

In addition, the Fed was instructed by the new Dodd-Frank financial reform law to divulge borrowing from other lending programs it created to stabilize financial markets during the economic meltdown. A December 2010 data release revealed that major banks had been big beneficiaries from some of those programs

Bernanke to Hill: Flawed reporting on Fed loans | Reuters

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Bernanke to Hill: Flawed reporting on Fed loans

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Secret Fed Loans Helped Banks Net $13 Billion kbit News and Current Events 0 November 28th, 2011 12:54 PM
Bernanke: Fed would supply more stimulus if needed kbit News and Current Events 0 July 13th, 2011 01:24 PM
Will Bernanke Signal Another Round of Fed Stimulus? Quick Summary News and Current Events 0 July 12th, 2011 07:50 PM
Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01% kbit News and Current Events 0 May 27th, 2011 11:20 AM
Bernanke Tries to Manage Expectations of Fed Role Quick Summary News and Current Events 0 August 30th, 2010 01:30 AM

All times are GMT -4. The time now is 10:35 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-23 in 0.07 seconds with 20 queries on phoenix via your IP