By Sunday night, when Mitch Mc, Connell required a vote on a brand-new expense, the bailout figure had broadened to more than five hundred billion dollars, with this substantial sum being allocated to 2 different propositions. Under the first one, the Treasury Department, under Secretary Steven Mnuchin, would apparently be offered a budget of seventy-five billion dollars to provide loans to particular companies and markets. The second program would operate through the Fed. The Treasury Department would offer the main bank with four hundred and twenty-five billion dollars in capital, and the Fed would use this money as the basis of a mammoth financing program for firms of all shapes and sizes.
Details of how these schemes would work are vague. Democrats stated the new expense would provide Mnuchin and the Fed total discretion about how the cash would be dispersed, with little transparency or oversight. They criticized the proposal as a "slush fund," which Mnuchin and Donald Trump could utilize to bail out favored companies. News outlets reported that the federal government would not even need to recognize the aid recipients for as much as 6 months. On Monday, Mnuchin pushed back, stating people had misconstrued how the Treasury-Fed collaboration would work. He might have a point, but even in parts of the Fed there may not be much enthusiasm for his proposal.
during 2008 and 2009, the Fed faced
