THE FEDERAL RESERVE’S EXTENDED STAY IN HOUSTON Extended Stay Hotels, which operates 21 extended-stay hotels in Houston under the Homestead Studio Suites, StudioPLUS Deluxe Studios, Extended Stay America, and Crossland Economy Studios brands, declared Chapter 11 bankruptcy earlier this week. How is the Fed involved? “The Federal Reserve holds $744 million of various junior classes of debt and $153 million in the senior debt that the central bank assumed after the collapse of Bear Stearns, which held a sizable amount of the hotel chain’s debt. The losses are mounting for the Fed on those Bear Stearns assets, which continue to sour. Extended Stay loans were held on the Fed’s balance sheet via a company called Maiden Lane that the central bank lent $29 billion in June 2008 to purchase $30 billion of Bears’ assets.” [Deal Journal; more at Calculated Risk]
That’s what you get with bailout nation!
End the Fed, this outfit has screwed the pooch. And now we’re all going to pay.
232 members of the House of Representatives have signed on to cosponsor legislation known as H.R. 1207, which if passed will change existing laws to enable Congress to audit The Federal Reserve.
If it all happens the compound on Allen Parkway will be up for lease, and you’ll be allowed to take pictures again.
Extended Stay deserves to go belly-up. They are the most disgusting hotels EVER!
“…company called Maiden Lane that the central bank lent $29 billion in June 2008 to purchase $30 billion of Bears’ assets.”
That probably should read “lent $29 billion in June 2008 to purchase $30 billion of Bear’s assets that were in fact worthless.”
To paraphrase Dorothy, “Toto, I don’t think we’re solvent any more.”
And the scam continues.