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Thread: The $2 billion UBS Incident

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    Re: The $2 billion UBS Incident

    Quote Originally Posted by washunut View Post
    I could be wrong but I did not think that any TARP money went to foreign banks.
    For example, billions of dollars in bailout money actually ended up in large banks in France, Germany, among other nations (in connection with the rescue of American International Group) -- an inevitable result given that company's extensive foreign operations. However, the U.S. government bore the entire $70-billion risk. Indeed, the U.S. share for this single rescue exceeded the size of France's entire $35-billion capital injection program and was nearly half the size of Germany's $133-billion program.

    TARP bailout disproportionately benefited foreign banks: Government Panel - International Business Times

    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.


    TARP went to foreign banks… | PoliPundit.com

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    Re: The $2 billion UBS Incident

    Quote Originally Posted by 1Perry View Post
    For example, billions of dollars in bailout money actually ended up in large banks in France, Germany, among other nations (in connection with the rescue of American International Group) -- an inevitable result given that company's extensive foreign operations. However, the U.S. government bore the entire $70-billion risk. Indeed, the U.S. share for this single rescue exceeded the size of France's entire $35-billion capital injection program and was nearly half the size of Germany's $133-billion program.

    TARP bailout disproportionately benefited foreign banks: Government Panel - International Business Times

    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.


    TARP went to foreign banks… | PoliPundit.com
    I did say that the Fed provided monies to foreign banks, just not sure about TARP. TARP did bail out AIG and other institutions that have foreign subs, so you are correct money could have flowed there. Not sure how much of any money has not yet been repaid.

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    Re: The $2 billion UBS Incident

    Quote Originally Posted by washunut View Post
    I did say that the Fed provided monies to foreign banks, just not sure about TARP. TARP did bail out AIG and other institutions that have foreign subs, so you are correct money could have flowed there. Not sure how much of any money has not yet been repaid.
    Both of those articles are about TARP. Nobody really knows what has been repaid and what hasn't.

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    Re: The $2 billion UBS Incident

    Quote Originally Posted by washunut View Post
    I could be wrong but I did not think that any TARP money went to foreign banks. There was a lot of interbank stuff that the Fed did which you are correct did help those banks over the 2008-2009 crisis.

    All I was trying to say is that the new regs from Dodd-Frank will not have an impact of what a UBS employee in London did.
    The interlinkage with foreign banks is the real reason I posted this material. They can manipulate as an organized group, as well. International bankers may control many US banks through the Reserve system. The biggest banks are old quiet banks.
    Lessons learned is why they are quiet.

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    Re: The $2 billion UBS Incident

    Quote Originally Posted by Manc Skipper View Post
    Does it matter how it was done? It wasn't supposed to be possible, this is the new era of responsible banking with multiple safeguards in place.
    That's what they said after the Great Depression.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

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