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> On Tue, May 12, 2009 at 10:35 AM, wrote:
> We are talking trillions of dollars from our pocket…
The Fed is lending to its member banks. That is the same as the banks taking in deposits insured by the FDIC. Banks specific loans are only seen by regulators as a matter of public purpose.
Do you want every loan by every bank revealed? If so, lobby congress, as the majority in congress doesn’t want that.
Your beef is with congress, not the Fed.
Also, loans to member banks are not ‘dollars from our pocket’ unless they aren’t repayable, and the regulators monitor banks for capital compliance and they’ve done an ok job so far in that regard. Relatively few FDIC losses given the magnitude of the slowdown.
> Where is accountability for keeping the dead alive?
Funding banks is not keeping the dead alive. All banks are always publicly funded via FDIC insured deposits. So happens the Fed is offering funds cheaper and for longer term than the FDIC, so it’s getting the business.