Fri 2010-04-23 19:59 EDT
New York Fed Warehousing Junk Loans On Its Books: Examiner's Report
As Lehman Brothers careened toward bankruptcy in 2008, the New York Federal Reserve Bank came to its rescue, sopping up junk loans that the investment bank couldn't sell in the market, according to a report from court-appointed examiner Anton R. Valukas. The New York Fed, under the direction of now-Treasury Secretary Tim Geithner, knowingly allowed itself to be used as a "warehouse" for junk loans, the report says, even though Fed guidelines say it can only accept investment grade bonds...
books; examinations s reported; new York Fed Warehousing Junk Loans.