Fall 2008: Morgan Stanley – #1 recipient of Fed’s ‘secret liquidity lifelines’

A look back…

As the banking crisis intensified in the Fall of 2008, with major banking institutions assuming, or on the verge of assuming, the classical ‘snorkel’ position (aka ‘underwater’ status), the Federal Reserve ran quickly to the rescue with secret liquidity lifelines” (Bloomberg 8-22-11).

The Fed substantially eased some important collateral rules for banks, “meaning that banks that could once borrow only against sound collateral, like Treasury bills or AAA-rated corporate bonds, could now borrow against pretty much anything – including some of the mortgage-backed sewage that got us into this mess in the first place….  ‘All of a sudden, banks were allowed to post absolute [expletive deleted] to the Fed’s balance sheet,’ [according to] the manager of the prominent hedge fund.” (Source: Bailout Hustle, Matt Taibbi).

The Federal Reserve ‘created’ various “facilities” to fire-hose liquidity out to major domestic and foreign banks, insurers, and brokerage firms, to include: Primary Dealers’ Credit Facility, Term Securities Lending Facility, Temporary Liquidity Guarantee Program, Commercial Paper Funding,Term Auction Facility, Public Private Investment Program

And, here we go – from the top (Bloomberg  Nov 28, 2011) :

Morgan Stanley, facing a crisis of confidence after the fall of Lehman Brothers Holdings Inc., got a $9 billion injection from Japanese bank Mitsubishi UFJ Financial Group Inc. and agreed to take a $10 billion bailout from the U.S. Treasury to shore up capital. As hedge-fund customers pulled funds out of the New York-based firm, it plugged the hole with $107.3 billion of secret loans from the Federal Reserve’s Primary Dealer Credit Facility and Term Securities Lending Facility, set up earlier in the year to supply brokerage firms with emergency financing.”

Peak amount of Debt on 9/29/2008:  $107B
………………………………………………………………

The Leviticus 25 Plan does not seek to ‘interrupt’ or reverse any of the special relationships that have developed in the Fed’s financial sphere.  It only seeks to level the playing field by providing U.S. citizens the same access to direct liquidity flows that the big banks enjoyed ‘in their time of need.’

The Leviticus 25 Plan proposes one additional upgrade to the Fed’s liquidity lines: A U.S. Citizens Credit Facility.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizenLeviticus 25 Plan 2027 (54252 downloads )

Treasury Secretary Bessent: “It’s Main Street’s Turn to Restore The American Dream.”

“It’s Main Street’s Turn To Restore The American Dream” – US Treasury Secretary Warns Wall Street

ZeroHedge, Apr 09, 2025 | Via American Greatness,Excerpts:

U.S. Secretary of the Treasury Scott Bessent laid out President Trump’s financial policy priorities for the American Bankers Association (ABA) on Wednesday, saying that Main Street America will now take priority.

Bessent speaking at the ABA’s Washington Summit, said, “For too long, financial policy has served large financial institutions at the expense of smaller ones— no more.”

The Treasury Secretary stated that, “It’s Main Street’s turn to hire workers, it’s Main Street’s turn to drive investment and it’s Main Street’s turn to restore the American dream.”

Bessent announced the Trump administration’s shift to focusing on helping Main Street businesses and consumers thrive by giving all institutions a chance to succeed, adding, “For the last four decades, basically since I began my career in Wall Street, Wall Street has grown wealthier than ever before, and it can continue to grow and do well.”

Addressing fears of a looming recession, Bessent defended Trump’s agenda of tax cuts, deregulation and trade rebalancing and noting that, 

“We want to de-leverage the government sector, re-leverage the private sector …. we can’t do it all at once, or that will cause a recession.”

Bessent added, 

“What will keep us from having a recession is making sure that the tax bill doesn’t expire, adding back 100% depreciation and then adding some of President Trump’s agenda — no tax on tips, no tax on Social Security, no tax on overtime.”

___________________________________

There is one more step that America needs to take to “re-leverage” the debt-logged private sector and activate the powerful reset that millions of American families and small businesses need – Main Street America needs liquidity.

The Leviticus 25 Plan provides that in full measure with its massive, public and private sector debt elimination dynamic.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizenLeviticus 25 Plan 2027 (54252 downloads )