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Need reporters - or is Baker right and the public got mugged?
I don’t live in New York or Washington, DC so I challenge one of you intrepid reporters there. I’d be astonished if Mr. Baker (http://tpmcafe.talkingpointsmemo.com/2008/04/21/george_will_moves_to_the_left/index.php)
was correct that the Fed bailed these banks out without substantial strings. This is not free money – they are allowing investment banks to borrow at the discount window, which means they have to pay it back the next day. When normal banks do this, the Fed requires them to hold more cash in reserve, and fix themselves – find new money or else.
So, reporters, what did the Fed require of
JPM Chase and Bear? What are they requiring of the other investment banks? How
are they protecting the taxpayer’s investment from turning into a giveaway or mugging?
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