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Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak

Discussion in 'Political Discussion' started by Real World, Apr 2, 2011.

  1. Real World

    Real World Moderator Staff Member

    Aug 15, 2006
    Likes Received:
    +1,077 / 7 / -3

    I'm surprised no one in here has posted this. Unless I missed it somehow. So now we're handing foreign banks our hard earned cash. Where's the outrage? We truly need some fundamental changes made in this country. If not, we might not have a country for much longer.

    Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak

    By Bradley Keoun and Craig Torres - Apr 1, 2011 1:53 PM ET

    March 31 (Bloomberg) --

    U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.

    Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.

    The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.

    Foreign Banks Tapped Fed?s Secret Lifeline Most at Crisis Peak - Bloomberg

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