This Is Where Many of The Notes Are – – Read Bloomberg Article After My Comments Below Fed Gave Trillions In Loans
As I have been saying for over a decade, notes are not lost and can’t be lost. Virtually impossible with stringent document custody procedures. The motive for robo-signing, endorsements in blank, wet-ink original notes not getting to trusts, and missing chains as well as the refusal of banks to show their GL entries for any particular note is that often the original wet-ink notes are actually “held” by other banks, the Fed or a Federal Home Loan Bank as collateral for servicing advances and other loans via discount window.
Reserve Banks accept a wide range of assets as collateral. General acceptance criteria for loan portfolios can be found below. Following the general acceptance criteria there is a detailed list of eligible asset types along with pledging instructions and valuation information.
Acceptance Criteria for Individual Loans
(1) The pledging institution must have rights in the loans that are sufficient to grant an enforceable security interest to the Reserve Bank. The Reserve Bank must be able to obtain a perfected, first priority security interest in the loans, free of the adverse claims of third parties, including the claims of an insolvency official or an affiliate of the pledging institution.
Secret Fed Loans Gave Banks Undisclosed $13B
The Federal Reserve and the 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.
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 that 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 reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.
Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse.
A fresh narrative of the financial crisis of 2007 to 2009 emerges from 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions. While Fed officials say that almost all of the loans were repaid and there have been no losses, details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.
The rest of the report covers…
‘Change Their Votes’
‘Wanted to Pretend’
And much much more that can be read here…