Posted on 03/31/2011 3:35:04 PM PDT by Leisler
A bank majority owned by the Libya Central Bank, was the direct recipient of US taxpayer largesse in the form of discount window borrowing. Bloomberg writes that Arab Banking Corp., a lender part- owned by the Central Bank of Libya, used a branch in New York to borrow at least $5 billion from the U.S. Federal Reserve as credit markets seized up in 2008 and 2009. Indeed a quick word search through the compiled daily releases will confirm that the Fed dispersed funds to the Libya-owned venture on well over 30 occasions. And while we have querried in the past how it is possible that various Libyan financial interests managed to get past domestic Anti Money Laundering provisions, when it comes to direct funding from taxpayers would it be too much to ask of Ben Bernanke not to transact with institutions operating on behalf of various so-called tyrants, mutants and, broadly, Antichrists?
(Excerpt) Read more at zerohedge.com ...
You made this story up. Good one.
ZeroHedge is doing yeoman’s work getting through the 129MB dump of Fed bailout docs....I’ve saved on HD! The friggen sent money to every GD shady banking front in the World....you will not believe what these MFers have done...ck it out. Bersnake must be marched out of office and Goldman Sax, Hank Paulson, GWB and the fools in Congress need to answer for this raw theft!
If more people cared about this nation than they do about DANCIN’ WITH THE STARS (and Idiot Politicians) they’d be in the streets.
ZeroHedge is doing yeoman’s work getting through the 129MB dump of Fed bailout docs....I’ve saved on HD! The friggen sent money to every GD shady banking front in the World....you will not believe what these MFers have done...ck it out. Bersnake must be marched out of office and Goldman Sax, Hank Paulson, GWB and the fools in Congress need to answer for this raw theft!
Hard to believe Tyler thinks the Fed uses taxpayer money when they make loans.
And it was paid back...with interest! The bastards. LOL!
GWB and the fools in Congress need to answer for this raw theft!
Theft? "Short terms loans that have been repaid" is your definition of theft? That's funny!
sfl
It’s a total shiite sandwich! I have real doubts about the Tarp paid back/successful canard and prefer to see more of the data and analysis. A bit more useful information about TARP available from the from the Congressional TARP oversight meeting March, 2011, from the transcript:
“In a recent paper, professors in Dallas and a co-author estimated that the CPP program, along with the FDIC’s Temporary Liquidity Guarantee Program, increased the value of banks participating in these two programs by approximately $130 billion, of which 40 billion represented a direct taxpayer subsidy to banks.
On the other hand, the political deals required to get TARP passed with an estimated 150 billion in largely unjustified and unjustifiable tax breaks, do not speak well for our democracy.
I estimated that the capital purchase program increased the value of banks debt by $120 billion at a cost of $32 billion for the taxpayers. Though in spite of the enormous value created by the government intervention, taxpayers ended up with a large loss.
TARP was the largest welfare program for corporations and their investors ever created in the history of humankind.
And some of the crumbs (ph) have been donated to the Auto Workers Unions doesn’t make it any better. It makes it worse. It shows that this redistribution was no accident. It was a premeditated pillage of defenseless taxpayers by powerful lobbyists. TARP is not just a triumph of Wall Street over Main Street, it is the triumph of K- Street over the rest of America.
These are exactly the issues you discussed with the previous panel in terms of additional losses coming through from major lawsuits and various kinds of put backs and so on. We don’t know how much capital they’re going to need to weather the next stage of the global cycle. And the Federal Reserve has not yet determined that, so why would you allow them to pay out any of this capital as dividends?
This is just reducing their equity and allowing them to have more leverage in their business. The bankers, again, want it, because they get paid on a return on equity basis. This is just letting them leverage up, and there’s a put option. We write the put option. We bear the cost of that.
You’re increasing the put option, which is not scored in anyone’s budget, by allowing them to pay these dividends. It’s unconscionable. It’s irresponsible. And the Federal Reserve should back off from allowing this increase in dividends, which is apparently where they are currently headed....”
You don’t think zero interest policy, or money printing is theft? You don’t think socialism, subsidizing losses is thieft? Why should AIG, that captured market share via below cost policies, be still in buisness? You don’t think GM bondholders were stolen from, nor that the continued existence of GM, and Chrysler isn’t a form of theft against FMC? You don’t think the national debt is a form of intergenational theft?
The bank portion is profitable.
http://www.freerepublic.com/focus/f-news/2697359/posts
The auto, Fannie & Freddie and mortgage giveaways will lose money.
TARP was a Treasury program funded with taxpayer dollars. The Treasury doesn't set interest rates or print money, thank goodness.
I find it hard to believe that anyone takes "Zero Hedge" very seriously.
It's a low-grade financial blog, and while it occasionally does a good job, it all too often makes glaring errors.
http://www.freerepublic.com/focus/f-news/2697359/posts
The auto, Fannie & Freddie and mortgage giveaways will lose money.
Yes, that's my take on the situation also. The original TARP program as proposed by the Treasury would have been entirely successful, since it was based on knowledge and experience about how previous economic straits had been navigated.
But by the time that the Congress got through turning the TARP program into a massive dog's breakfast, it was clear that a lot of the TARP money was going to be wasted.
Zero Hedge tries to get out in front of the newz and sometimes does seem to be disposed to conspiracy however more exposure of the TBTF Federal Reserve/Treasury/Gov Crooks needs to be brought to light and exposed to analysis, IMO. There will be more info about this release and more questions about the ‘profitability’ plus more FOIA searches and we will see what is is.
Oh, good, the FR is a-political.
That power is enumerated to Congress under the Constitution and that is why he wants it. Nowhere in that document is a multinational privately held bank to control monetary policy found.
Then it's a good thing we don't have a multinational privately held bank controlling monetary policy.
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