Federal Reserve secretly bailed out large companies, including foreign ones

Re:Federal Reserve secretly bailed out large companies, incl... by tptacek on Monday December 13, 2010 @05:00PM (#2002129)

Would a company smaller than Harley Davidson get a "loan"? Maybe not. But if we're talking about commercial paper, we might not be talking about companies coming to the Fed hat-in-hand for a payoff; we may be talking about the Fed stepping in to fulfill a function that would under any ordinary circumstance be handled by the banking system. Remember, commercial paper apparently locked up solid during the crisis.

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Re:Federal Reserve secretly bailed out large companies, incl... by jimmyk on Monday December 13, 2010 @05:09PM (#2002154)

It's still not clear that another motorcycle company would receive the same deal as Harley Davidson. Surely Harley Davidson wasn't the only motorcycle company affected by the commercial paper freeze. Was it a good idea for the Fed to step in and fulfill that function? Maybe. But that doesn't mean it was ideal and there's nothing to complain about.

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Re:Federal Reserve secretly bailed out large companies, incl... by msbarnett on Monday December 13, 2010 @05:48PM (#2002283)

Complaints are only valuable insofar as they are constructive.

What should they have done differently? If bank lending really was frozen solid, is the argument that it would have been better for the Fed not to make these loans, and not turn a profit in doing so?

There's some vague hand waving here about competitors who may also have been affected by the credit freeze who may not have received similar details, but I'm not seeing any specifics.

Are you simply complaining that there may be something to complain about?

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Re:Federal Reserve secretly bailed out large companies, incl... by jimmyk on Monday December 13, 2010 @07:55PM (#2002643)

I'm not certain anything could have been done differently. At least not at the late stage that the Fed had to act. Then again, I'm a programmer and not a central banker. I'm mainly complaining that the situation was allowed to get to the point where the Fed had to take these kinds of drastic and secretive actions and that they did it without any oversight.

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Re:Federal Reserve secretly bailed out large companies, incl... by joe_the_user on Monday December 13, 2010 @06:32PM (#2002387)

The "ordinary banking system" is not meant to be a public utility. Large or small, if the Fed is supporting the market, it is making decisions about resource allocation.

I'm not even always against the government making such decisions.

It's just the bailout involved the government making these decision in the worst possible circumstance, the least democratic, the least open and the most remunerative-to-bad-actors circumstances.

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