What the Fed is still owed by Wall Street
The Federal Reserve has a story and is sticking to it: We didn’t lose taxpayer money, and we won’t. But several emergency programs and credit lines still exist, and the path to profitability on them remains uncertain. Hedge funds, pension funds and other investors have some $25 billion in outstanding loans from the Fed, some backed by subprime consumer debt. The central bank’s books are stocked with $66 billion of securities related to Bear Stearns and the American International Group, and the troubled insurer also owes $20 billion on a Fed credit line.