2008-09-16nakedcapitalism.com

Lehman Brothers Holdings Inc., the securities firm that filed the biggest bankruptcy in history yesterday, was advanced $138 billion this week by JPMorgan Chase & Co. to settle Lehman trades and keep financial markets stable, according to a court filing.

...

The first advance was repaid by the Federal Reserve Bank of New York, Lehman said. The bank didn't say if the second amount was repaid. Both advances were ``guaranteed by Lehman'' through collateral of the firm's holding company, the filing said. The advances were made at the request of Lehman and the Federal Reserve, according to the filing.

Isn't this just more Fed loan laundering? If that is the intent again, then clearly they are trying to be sneaky...



Comments:

tvsterling at 19:29 2008-09-17 said:
The current pattern is the same as in all crashes but historically the government has steered clear of the massive intervention we are seeing now. Is this Hubris? The government has taken a solemn vow that they will prevent another depression from ever happening. Perhaps I'm out of line here but THINK where this leads especially if it doesn't work. First, the taxpayer will be stuck with reams of worthless securities. Second, the only cure to keep the country operating will be to fire up the presses & inflate the currency. The taxpayer will take a double hit. Does this seem wise? America is truly a welfare state for the rich. Permalink

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