Contrary to the many many (many) lies told by the Federal Reserve the facts finally got out today - only because the independent Senator Bernie Sanders from Vermont inserted an audit into the bill Wall Street wrote for itself known as Dodd-Frank. Without Senator Sanders' insistence this information would never have gotten out.
During the course of the financial crisis, the Fed launched a host of emergency programs that added $3 trillion of liquidity to the markets.
That's trillion with a T and its U.S taxpayer money and credit.
FIREeconomy's diary :: ::
Many were also surprised to learn today that the U.S would help with the European bailout via the IMF. But what is even more surprising is during the crisis of 2008 foreign banks snaked some of that U.S taxpayer money too, first from the Commercial Paper Funding Facility:
Six European banks were among the top 11 companies that sold the most debt overall to the the Commercial Paper Funding Facility. They sold a combined $274.1 billion, according to data made public today by the U.S. central bank. UBS sold $74.5 billion, the most among all borrowers. The largest U.S.-based user was insurer American International Group, selling $60.2 billion.
Then from the Term Auction Facility:
A initial review of information released by the Federal Reserve shows that foreign banks such as Royal Bank of Scotland Barclay's PLC, Dresdner and Society Generale borrowed heavily from the Fed's Term Auction Facility (TAF) during the initial days of the financial crisis.
So let's get this straight:
Wall Street Banksters who created the problem get a bailout from the U.S taxpayer.
Foreign bankers who also contributed to the problem get a bailout from the U.S taxpayer.
But the U.S homeowner who is a U.S taxpayer and got caught in this Wall Street manufactured crisis gets...to lose their house throughrocket dockets!
http://www.dailykos.com/storyonly/2010/12/2/924883/-The-$3.3-Trillion-Wall-Street-Foreign-Bank-Bailout
Wednesday, December 1, 2010
Guest Post: Fed Data Shows Foreign Banks Huge Beneficiaries of Emergency Lending Programs, Hedge Funds, McDonald’s, Harley-Davidson and Others Also Received Help
→ Washington’s Blog
Under orders from Congress pursuant to the Dodd-Frank financial legislation, the Fed has finally released details of its emergency lending starting in 2007.
As Bloomberg notes:
Bank of America Corp. and Wells Fargo & Co. were among the top borrowers from the Term Auction Facility
…
Bank of America had three loans for $15 billion each outstanding from the facility as of Jan. 15, 2009, while Wells Fargo had three loans for $15 billion each on Feb. 26 …
Citigroup Inc. and JPMorgan Chase & Co. also availed themselves of the TAF. Citigroup’s Citibank NA subsidiary had three loans under the facility totaling $20 billion on Jan. 15, 2009. JPMorgan’s JPMorgan Chase Bank NA had two loans totaling $25 billion on Feb. 26, 2009.
Bloomberg notes that foreign banks borrowed heavily from TAF as well:
Banks with headquarters outside the U.S. were among the first to begin using the facility in December 2007 and were also among its heaviest borrowers. These included the U.S. affiliates of banks such as Manama, Bahrain-based Arab Banking Corp., Madrid-based Banco Santander SA, and Paris-based Societe Generale SA. Beginning on June 18, 2009, Barclays Bank Plc had two loans totaling $23.45 billion outstanding.
In a second article, Bloomberg points out that despite Goldman’s statements that it would have survived even without help from the Fed, Goldman was a big borrower as well:
Goldman Sachs Goup Inc., which rebounded from the financial crisis to post record profit last year, was a regular borrower from two emergency Federal Reserve programs in 2008 and early 2009, new data show.
http://www.nakedcapitalism.com/2010/12/guest-post-fed-data-shows-b-of-a-and-wells-fargo-biggest-borrowers-under-feds-emergency-lending-program-foreign-banks-also-borrowed-huge-amounts.html
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