Topic: Toxic Asset Bailout

The Federal Reserve released 136 megabytes of redacted PDF documents detailing secret lending practices. The records reveal that $3.3 trillion was lent to foreign banks, including a bank partially owned by Libya. The documents also cover the Toxic Asset Relief Program (TARP) and loans to hedge funds managed by former Goldman Sachs executives.

The Wall Street Journal reports that the banking industry is lobbying the FDIC to allow banks to use taxpayer aid to buy back their own toxic assets. The hosts argue this confirms their previous analysis of the Public-Private Investment Program (PPIP) as a scam. They claim the program allows banks to clear their books while the taxpayer assumes 80% of the risk with little upside.