Moral Hazard, Fed Style

Reading Time: 2 minutes How exactly did the Federal Reserve gain the emergency authority to loan more than $1 trillion of taxpayer money to the banks secretly and without oversight? The Washington Post explains today in a long investigative piece by Binyamin Appelbaum and Neil Irwin. As it turns out, Sen. Chris Dodd slipped the necessary language into an Read More

Treasury’s Shadowy Bid to Bilk Taxpayers

Reading Time: 2 minutes The banks that received money under the Treasury’s Troubled Asset Relief Program also granted stock warrants so that taxpayers could capitalize on the risk of investing their money. Bloomberg reports that the Treasury is well on its way to screwing taxpayers on the deal: Banks negotiating to reclaim stock warrants they granted in return for Read More