Companies that used emergency loan facilities

The details of 21,000 transactions have been released by the Feds that used emergency loan facilities during the financial crisis and the amount they borrowed. Congress ordered the documents to be released and the details have been posted on the Fed’s website The information will disclose the degree of support offered to banks but some of the biggest banks ultimately did not need the money.

If loans and mortgage backed securities turned sour the Bank of America was pledged support for up to $118bn of assets. AIG, the insurance giant, had to draw on $62bn from a credit facility to pay off immediate debts also foreign banks Barclays, Royal Bank of Scotland and Deutsche Bank borrowed from the Fed to overcome their financial predicament. On March 13,2008 Bear Stearns ,a large US bank, experienced imminent insolvency and was loaned $12.9bn to trade through the following few days.

The money has since been paid back according to the documents…
When the credit markets were close to seizing up, the Feds had provided $3.3 trillion in emergency aid, most of it in September 2008 since the collapse of the Lehman Brothers.

It was announced last month that the stimulus money includes $600bn, which caused objections the central bank was fueling inflation and asset price bubbles.