Verizon got a $1.5 billion credit boost from Federal Reserve
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.
| December 2, 2010; 7:00 AM ET
Save & Share: Previous: FCC chair's net neutrality push faces uphill battle
Next: Congressman promises Internet privacy bill with do-not-track program for youth
Posted by: RobMc1 | December 2, 2010 11:17 AM | Report abuse
Posted by: jobandon | December 2, 2010 8:34 PM | Report abuse
Posted by: veritasinmedium | December 2, 2010 10:14 PM | Report abuse
Posted by: incredulousinBoyntonBeach | December 2, 2010 10:27 PM | Report abuse