Reinhart got it right
July 25, 2008 at 12:28 PM EDT
I hadn’t noticed this back then, but Vince got it right: The Fed purchased the $30 billion of securities from JPM/Bear Stearns, with JPM agreeing that if there were any net losses it would be responsible for the first $1 billion. It’s very odd that the Fed would call this a non-recourse loan, as they cut [...]
