Senator Demands To Know Why Feds Secretly Bailed Out Toyota And Mitsubishi

Sen. Bernie Sanders of Vermont wants to know why the Federal Reserve spent billions of dollars helping foreign-based automakers during the financial crisis two years ago.

Last week, the Fed released pages and pages of records on its activities during late 2008 and 2009 as the crisis in financial markets gathered steam and credit was frozen. Those records show that the Fed spent nearly $5 billion buying commercial paper -- unsecured, short-term loans usually used by companies to cover accounts receivable, inventories and payroll -- from Mitsubishi and Toyota. The loans matured and were due, typically, in three months.

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Joe_Limon - 12/7/2010 1:57:14 PM

+6 Boost

hey you found your caps lock key :)

Agent009 - 12/7/2010 1:56:21 PM

+3 Boost

They also bailed out BMW Financial as well but the article fails to mention that.

acronis - 12/7/2010 2:30:47 PM

-4 Boost

This doesn't surprise me one little bit.

Of course the propagandist, aka, Corp Media, will only report what gets tongues wagging so why should they report anything other than bias details about the GM bail out?

Why do you think the derogatory term "Government Motors" was mainly used solely to describe GM's bailout?

Agent009 - 12/7/2010 4:08:48 PM

-2 Boost

True

ParrisBoyd - 12/7/2010 3:36:22 PM

-2 Boost

Ah, after all those indignant screams of "Government Motors," now the truth comes out. Right on. But really, Senator, for the rest of the story, you'll have to ask WikiLeaks...

LexSucks - 12/7/2010 4:20:58 PM

-7 Boost

All those people that were calling GM "Government Motors" should also say the same about Toyota, Mitsu, Ford, BMW financial, etc...

Now we can clearly see that GM wasn't really Gov't motors. Just like Toyota, Mitsu, and ford aren't Gov't motors. The folks who were calling GM "Goverment Motors" are now looking stupid.

Rectifier - 12/7/2010 7:11:41 PM

+8 Boost

Autospies, your title is just full of crap!
If you cant make the difference between short-term loans and bailing-out, no wonder you get idiotic comments like this guy's.

Joe_Limon - 12/7/2010 7:50:50 PM

-1 Boost

it's not a loan if there isn't interest applied. Anybody know if they were charged for this?

mini22 - 12/8/2010 3:09:23 PM

+1 Boost

The fact is they were given financial help. What more do you need to know!So anyone that complains that the US government helped out GM and Chrysler needs to shut up now.Obviously the US government helps out lots of companies,especially in the automotive world.Further it is now been proven that the government was right to do so. Both GM and Chrysler are coming back with decent product and greatly improved sales.Can you imagine if the US government let GM and Chrysler fail but still extended financial olive branches to these other auto companies. How would that look!!