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Foreign Banks Tapped Fed's Lifeline Most as Bernanke Kept Borrowers Secret - Bloomberg
I thought the stimulus was about creating jobs and pumping money into the economy. Not only did I not agree with that to begin with, but it turns out that's not where the money went at all.
Obama gave it to GE and the banks, including several FOREIGN banks.
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.
I thought the stimulus was about creating jobs and pumping money into the economy. Not only did I not agree with that to begin with, but it turns out that's not where the money went at all.
Obama gave it to GE and the banks, including several FOREIGN banks.
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