The Deepening Marriage of Government and Business
As junk bond losses top $35 billion, and home prices drop by record amounts, recent actions of the Federal Reserve under Chairman Ben Bernanke show that the government, which already has an enormous amount of control over the economy, is expanding its role.
| Go to Home - Most Recent PostsMarch 25 (Bloomberg) — The Federal Reserve further expanded its role as a backstop to Wall Street dealers, setting up a new company to manage and sell $30 billion of Bear Stearns Cos. assets.
In disclosing terms of a financing arrangement to speed JPMorgan Chase & Co.’s purchase of Bear Stearns, the Fed said yesterday it hired BlackRock Inc. to oversee and sell the assets, which will be placed in a new company created by the central bank.