Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Sta

[walerosco]

It's hard to imagine a pair of people you would less want to hand a giant welfare check to — yet that's exactly what the Fed did. Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan's penchant for dabbling in thoroughbred racehorses. But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

http://www.zerohedge.com/article/matt-taibbi-asks-why-fed-gave-220-million-bailout-money-wives-two-morgan-stanley-bigwigs

[babydollhead]

1. kick

[Autumn]

2. They need the money?

Our government is all about helping these poor people out of poverty.

[Newest Reality]

3. They do it because ...

THEY CAN! Simple.

Who is going to stop them? Them?

[ChiciB1]

8. Well, I Hardly Think Obama Will Or MOST Of The Democrats! They Get It

because they wanted it. Probably nothing more to it than that, if truth be told! But then truth isn't what happens these days! Actually, if words were ever removed from dictionaries, the word TRUTH should be one of the first to go!

I've come to believe I wouldn't know "truth" if it slapped me in the face!

[northoftheborder]

4. Friends in high places........

[midnight]

5. Apparently the pain that is being equally distributed in this countries time of

economic hardships will not even touch the shores of Susan and Christy's lives. However, babies without food will have to learn to do more without less. These are the extremes created via compromise and bipartisanship.. It is sold as a win win.. And since Americans like winning... All we have to say is you are a winner....

[hobbit709]

6. They really need to break out the guillotine.

[Dokkie]

7. They needed to buy bread?

But I guess its ok because all but $65b of the TARP bill has been paid. TARP is the biggest scam done to the American people in decades. Trillion of dollars from the FED and treasury at 0 or near 0 interest rate just to keep the zombie bank system alive. F*** TARP

[LiberalAndProud]

9. Transparency. It is no wonder Ben was embarrassed to tell us what he did with the money.

Bernanke really needs to be far removed for our monetary policy, as does every one of his accomplices who have their hands in the thievery.

It is a good thing, at least, that these sorts of shenanigans are seeing the light of day at long last.

[ixion]

10. Because they're the wives of too-big-too-fail banksters.

No other information required.

[DrDan]

11. this is simply beyond obscene

[leftstreet]

12. This is shitty, but are these ladies being scapegoated?

Given the enormous ENORMOUS welfare money available to Wall Street, $220 million isn't that much

:shrug:

[BlueJac]

WTF

[BlueJac]

14. WTF

[LiberalAndProud]

15. 'tis a mere pittance for the 1%.

Mad money for the women folk.

[DCKit]

16. If that's the case, scapegoat me NOW!

I'll settle for 10% of that scapegoating.

[democrank]

13. It`s just part of Washington`s favorite entitlement program.

[LiberalAndProud]

17. .

:kick:

[mjeanb]

18. Isn't this NEWS?

Why hasn't this hit the major TV news networks?