Congressman Calls for Hearings Into Fed’s Secret Trillions
Revelations the Federal Reserve secretly doled out more than $7 trillion to financial institutions here and abroad during the height of the financial crisis – approximately 10 times more money than Congress approved in the Troubled Asset Relief Program – has some in Congress calling for a federal investigation.
House Oversight and Government Reform Committee ranking member Elijah Cummings (D-Md.) has sent a letter to panel Chairman Darrell Issa (R-Calif.) asking the committee to “hold a hearing with Federal Reserve Chairman Ben Bernanke and officials from the nation’s largest financial institutions that benefitted from trillions of dollars in previously undisclosed government loans provided at below-market rates.”
The Nov. 28 letter followed the release of the January 2012 issue of Bloomberg Markets Magazine, which details approximately $7.7 trillion the Federal Reserve under Bernanke’s direction secretly loaned to financial institutions. Many of those institutions received tens of billions of dollars of emergency loans even as their leaders were telling investors they were financially sound.