Bloomberg Markets magazine reports in its January issue that the Federal Reserve gave U.S. banks secret loans that netted $13 billion of undisclosed income. The $1.2 trillion bailout in December of 2008—the largest in U.S. history—has been kept a secret by the Fed and big banks, but 29,000 pages of documents from 2007 to 2009 obtained through the Freedom of Information Act shed new light on what happened. The big banks continued to fight government regulations after the bailouts, while lawmakers did not know the details of the bailout packages. The Fed says that the loans have been paid off, but the investigation suggests a reckless enabling of the big banks to grow bigger.
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