Bernanke May Extend Benefits for Finance Sector Welfare Queens

[marmar]

from Bloomberg:



Bernanke Says Fed May Extend Wall Street Lending Access to 2009

By Scott Lanman

July 8 (Bloomberg) -- The Federal Reserve may extend securities dealers' access to direct loans from the central bank into 2009 as long as emergency conditions ``continue to prevail,'' Chairman Ben S. Bernanke said.

``The Federal Reserve is strongly committed'' to financial stability and is ``considering several options, including extending the duration of our facilities for primary dealers beyond year-end,'' Bernanke said in a speech to a conference in Arlington, Virginia.

Bernanke also endorsed proposals to set up a federal liquidation process for a failing investment bank. The Treasury should ``take a leading role in any such process, in consultation with the firm's regulator and other authorities,'' he said.

The comments reflect the Fed's assessment last month that financial markets ``remain under considerable stress,'' even after the Fed started the unprecedented lending programs in March. Bernanke at the same time is aiming to address criticism that the Fed's loans to Wall Street may encourage more reckless lending, sowing the seeds of future crises.

The Fed chairman didn't comment on the outlook for the economy or monetary policy in the prepared text of his remarks today to a Federal Deposit Insurance Corp. forum on mortgage lending. Treasury Secretary Henry Paulson and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon are also scheduled to speak at the event. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aSvgnK_7DdYU&refer=home

[Romulox]

1. Cut throat, laissez faire capitalism doesn't work without a good deal of government support! nt

[indepat]

2. The Fed busily supporting fraud, abuse, and mismanagement by

assuring crooks/the inept keep their profits and the public pays for their greed/mistakes. :grr: :mad:

[Javaman]

3. There is no "may" about it.

he can't cut the interest rate again otherwise inflation will skyrocket. He can't raise it either because the already boned investment sector would tank.

so rather than do the right thing and raise the interest rate and help out the middle class, he's going to give corporate welfare to all his wall street buddies.