Network News

X My Profile
View More Activity
Posted at 7:00 AM ET, 12/ 2/2010

Verizon got a $1.5 billion credit boost from Federal Reserve

By Cecilia Kang

The Federal Reserve's financial aid during the finanicial crisis not only went to Wall Street but companies such as Verizon Communications that aren't associated with the financial sector.

My colleagues Jia Lynn Yang, Neil Irwinn and David Hilzenrath reported Wednesday about new data that showed the Fed rushed trillions of dollars iin aid in 2008 and 2009 to Wall Street titans as well as Harley Davidson, GE and Caterpillar:

By fall 2008, credit had frozen across the financial system, including the commercial paper market. The Fed then purchased commercial paper issued by GE 12 times for a total of $16 billion. It bought paper from Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued by Verizon twice, totaling $1.5 billion.

"It is hard to say what would have happened without the facility, and how its absence might have affected GE, but overall the program was extremely effective in helping stabilize the market," GE spokesman Russell Wilkerson said by e-mail. Verizon spokesman Robert A. Varettoni said that it was "an extraordinary time," adding that there was no credit available otherwise at the time. .

Read the whole story here.

By Cecilia Kang  | December 2, 2010; 7:00 AM ET
Categories:  Verizon  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: FCC chair's net neutrality push faces uphill battle
Next: Congressman promises Internet privacy bill with do-not-track program for youth

Comments

Maybe these companies should not be carrying so much debt? The International Reserve Bank of America. Their mandate covers this stuff? Are they just extending another bubble? Interesting stuff.

Posted by: RobMc1 | December 2, 2010 11:17 AM | Report abuse

Nothing was credit worthy, naturally there was no credit. I can pawn my Swiss watch to pay for their raid on the treasury. I'm busy boosting stock. Not theirs.

Posted by: jobandon | December 2, 2010 8:34 PM | Report abuse

There is still no credit available for small business. No one cares about helping them.

Posted by: veritasinmedium | December 2, 2010 10:14 PM | Report abuse

This is totally disgusting news. The Bush administration got to pick and choose which companies to "save" (from their own overextension and high debt ratios) and which to let wallow in the mud. Now we know who realy runs our once-great country. It certainly ain't the general population. And all this hollow noise about how the politicians love and respect and want to help the small businessmen -- and how the restoration of Clinton-era income tax levels on families with taxable incomes (after deductions) in excess of $250,000 would "hurt the small businessman" -- is just that: hollow noise.

I sure hope the readers notice that all this stuff was happening in the fall of 2008 -- because Obama, who will undoubtedly get blamed for this, didn't take office until January 2009. This was the Bush administration's doing. Doing what came naturally to them.

Posted by: incredulousinBoyntonBeach | December 2, 2010 10:27 PM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company