Even an idiot can understand how bad the Federal Reserve is:
If we could audit the Federal Reserve, we might know how much money they lost in this bailout. Everyone should watch the end of this movie starting at 9:00 to see who will really be in control of the housing market.
The Federal Reserve Bank of New York sold a multibillion-dollar parcel of risky mortgage bonds Thursday to a unit of Credit Suisse Group AG in a deal that represents its single-largest sale of troubled assets since the financial crisis.
The bonds were part of a portfolio that the New York Fed took on as part of the 2008 bailout of American International Group Inc. The deal came after the regional Fed bank quietly solicited bids from four large securities dealers, and could set a precedent for how it disposes of other assets in the coming months, market participants said.
The New York Fed didn’t disclose how much Credit Suisse paid for the bonds, which had an unpaid principal balance of $7 billion, but the amount is likely to be more than $3 billion based on prices of comparable debt. The Swiss bank’s U.S. securities arm is expected to resell most of the securities to investors.