NEW YORK (
) -- The
is poised to start a new round of stimulus,
reported, citing the biggest bond dealers in the U.S.
The Fed will inject more money into the economy next quarter by purchasing mortgage securities instead of Treasuries, the bond dealers said. The Fed may buy about $545 billion in home-loan debt,
The Fed bought $2.3 trillion of Treasury and mortgage-related bonds between 2008 and June.
reported the Fed and big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing,
said, based on 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions.
magazine's January issue, the Fed didn't tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day; bankers didn't mention they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy; and no one calculated until now that banks got an estimated $13 billion of income by taking advantage of the Fed's below-market rates.
Fed officials say almost all of the loans were repaid and there have been no losses, but details suggest the secret funding enabled the biggest banks to grow even bigger, according to
The six biggest U.S. banks --
Bank of America
which received $160 billion from the Troubled Assets Relief Program, borrowed as much as $460 billion from the Fed,
calculated, citing data obtained from the Fed.
-- Written by Joseph Woelfel
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