Fed repaid JPMorgan $87 bln for Lehman financing

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - The New York Federal Reserve intervened aggressively to shore up the U.S. financial system this week, providing at least $87 billion to help underpin trades with bankrupt Lehman Brothers, court documents show.

The Fed's action is the latest sign of how U.S. authorities have been seeking to prop up financial markets following the failure of Lehman and as big insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) fights for survival.

While the government had pledged not to fund a rescue of Lehman, the disclosure on Tuesday showed authorities that were taking other financial steps to prevent markets from descending into chaos.

<snip>

Lehman and the New York Fed had requested the advance, known as a "commencement date advance" and the New York Fed repaid it, according to filings.

In effect, the New York Fed lent Lehman the funds.

A representative for the New York Fed declined to comment.

"This expansion of the Fed's credit program is unprecedented," said David Pauker, a managing director with restructuring adviser Goldin Associates.

Read more: http://www.reuters.com/article/bondsNews/idUSN1646400420080916?sp=true

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I.am.just.speechless.

[Ichingcarpenter]

1. WTF? Is what I said too.

:mad:

[The Backlash Cometh]

2. Shit. That's just what they did in a local situation here in town.

Steal from Paul to pay Peter.

[mike_c]

3. we are Paul....

:grr:

[The Backlash Cometh]

6. Yeah. Exactly the same thing.

They're just moving money from the public sector back to select private sector businesses. It's a reverse tax scheme.

[defendandprotect]

4. THESE are the economic decisions our elected reps are supposed to ...

be making -- not a private bank -- !!

And Congress is on vacation ... !!!

[BootinUp]

5. This is getting ridiculous. We could have had universal healthcare

by now with all the cash being pumped into these poorly run companies.

[AlphaCentauri]

7. Now we got the corporate classified information

doing business under the table with tax dollars

[ozymandius]

8. The Fed is handing out money to anyone who shows up at the door.

This is madness.

[stillcool]

9. The 'restructuring industry'...

what is that, and why is it in uncharted waters?

[Robbien]

10. The billionnaires on Forbes 400 got their billions from these shady banks

and we the people are now reimbursing these shady banks.

Nice how that works, isn't it.

[Yavin4]

11. These Firms Have Paulson and The Fed Over A Barrel

These firms know that Paulson and the Fed are scared to death of a melt down before the election, so they're getting anything they want from Uncle Hank.

[Robbien]

12. Paulson and the Fed are on THEIR side

Each deal Paulson and the Fed have been making these days is to protect the elite and fund the deficits from taxpayer money.

These firms aren't arm twisting Paulson and the Fed. The only discussion going on in those meetings is how much thievery can be done from the public funds. No one in any of the meetings is protecting our interests.

[CountAllVotes]

13. CNBC: The American people lost $500 billion yesterday

in the stock market. What if you are not invested in the stock market and could really give a sh*t?

You pay their bill anyone as they borrow your money to fund their follies!

:mad:

:kick:

[slipslidingaway]

14. Kick n/t