

Fed Gives 220 Million Startup Funding to Wives of Morgan Stanley bigwigs - newsnd
http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411

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newsnd
" 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."

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D3lt4
This is too surreal, I'm not sure if I believe it or not. Is the US really
that screwed up?

~~~
JoachimSchipper
AFAIK, Rolling Stone has a reputation of being fairly accurate, if not
unbiased. So yes, probably.

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goombastic
I am not a US citizen, but if that's true, it is sick.

