Menu Close

Fed lending program – secret until now

July 6, 2011
Goldman Took Biggest Loan in Federal Reserve Program

A unit of Goldman Sachs took the biggest single loan from a Federal Reserve lending program whose details have been secret until now.

The Goldman Sachs unit borrowed $15 billion from the Federal Reserve on Dec. 9, 2008, the Fed said in data released on Wednesday. The Fed made 28-day loans from March 7, 2008, to Dec. 30, 2008, as part of an $80 billion initiative, the central bank said. The information was released in response to a Freedom of Information Act request by Bloomberg News.

The central bank resisted previous requests for more than two years and released information in March on its oldest loan facility, the discount window, only after the Supreme Court ruled it must release the data. When Congress mandated the December 2010 release of other data on the Fed’s unprecedented $3.5 trillion response to the 2007-9 collapse in credit markets, information about its so-called single-tranche open-market operations was not included.

Units of 19 banks received the loans, which were all repaid in full, according to the Fed. The units are known as primary dealers, which are designated to trade government securities directly with the New York Fed.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Follow by Email