The Federal Reserve ran a secret loan program to banks for half a year prior, and for some time after, the 2008 crash.
The program, known as the 'single-tranche open market operation' or ST OMO, totalled $80 Billion and was lent out for as little as .01% interest to banks such as Goldman Sachs, Credit Suisse, Royal Bank of Scotland.
Because Congress wasn't aware of the program, the Dodd-Frank law that required the Fed to divulge its emergency lending information, didn't specifically mention the program. Therefore, the Fed left it out.
ST OMO only came to light because of a FOIA (Freedom of Information act) lawsuit. |
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