Historical note: The Fed paid these banks for the Maiden Lane II asset they acquired during the $182 billion AIG bailout: France’s Societe Generale at $11.9 billion, Germany’s Deutsche Bank at $11.8 billion, and Britain’s Barclays PLC at $8.5 billion. AIG, through this fund also funneled significant bailout money to U.S. banks that had already been bailed out themselves under the Troubled Asset Relief Program. As AIG counterparties, Goldman Sachs got $12.9 billion, Bank of America got $5.2 billion, and Citigroup got $2.3 billion all at 100% on the dollar. It pays to have friends in high places.
http://dailycapitalist.com/2011/07/07/how-the-fed-crashed-the-mbs-market/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheDailyCapitalist+%28The+Daily+Capitalist%29&utm_content=Yahoo!+Mail
