Bernanke being pressed to disclose details on the $2 trillion loan

This $2T loan is a large part of the $3.5T US bailout that was identified in the article I posted yesterday. The bailout is not just the $700B, but is far beyond what the general public thinks. This is massive amounts of new money being dumped into the system. We could see substantial devalution in the US dollar starting within the next 12 months - gold has amazing upside potential (in the not too distant future) especially for gold mining companies that are able to navigate through the short-term challenges. The Fed had to gain Congress approval for the $700B, but did not need to go to Congress for the $2T loan, hence the disclosure disconnect. Subsequently, the Fed has refused to provide details on $2T loan. You know, $2T is not exactly petty cash. One has to wonder what they are hiding. Bloomberg has filed a Federal lawsuit seeking to force disclosure.

Here is a part of the Bloomberg article:


Lawmakers, Investors Ask Fed for Lending Disclosure (Update2)

By Alison Fitzgerald

Nov. 13 (Bloomberg) -- Members of Congress, taxpayers and investors urged the Federal Reserve to provide details of almost $2 trillion in emergency loans and the collateral it has accepted to protect against losses.

At least five Republican members of Congress yesterday called for the Fed to disclose which financial institutions are borrowing taxpayer money and what troubled assets the central bank is accepting as collateral. More than 300 more investors and taxpayers also pressed for more disclosure in e-mails and interviews with Bloomberg News.

``There cannot be accountability in government and in our financial institutions without transparency,'' Texas Senator John Cornyn said in a statement. ``Many of the financial problems we are facing today are the direct result of too much secrecy and too little accountability.''

House Republican leader John Boehner and Republican Representatives Jeb Hensarling of Texas, Scott Garrett of New Jersey and Walter Jones of North Carolina also are pressing Fed Chairman Ben S. Bernanke to elaborate on the Fed's emergency lending. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in the separate $700 billion bailout of the banking system that was approved by Congress last month.

Bloomberg News has sought records of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.