Fed Kept Taps Open For Banks In Crisis (Libyan-owned bank borrowed 73 times)

Wall Street Journal ^ | April 1, 2011 | LIZ MOYER And DAVID BENOIT

[maggief]

One of the biggest secrets of the financial crisis was disclosed Thursday when the Federal Reserve released thousands of pages of data showing heavy discount-window borrowing by foreign banks, regional U.S. banks and institutions fighting for survival.

It was the first time the Fed has given details about banks that borrowed from the central bank's oldest emergency-lending facility. Thursday's move was forced by lawsuits filed by Bloomberg LP's Bloomberg News and News Corp.'s Fox Business Network, and last year's Dodd-Frank law requires the Fed to disclose future borrowings after a two-year lag. Details of other rescue programs by the Fed were made public in December.

[Doe Eyes]

Somebody please ban this troll already.

I oppose banning Toddsterpatriot. He posts good information and backs it up with links.

[TruthConquers]

YOU don’t know what Greenspan did?

OK

He is responsible for the housing market to become a bubble.
He kept rates too low, to create it.

The FED is NOT harmless.

How can you post about how good the FED is, and NOT know that?

[TruthConquers]

Not the posts I see.

He goes around harrassing posters.

Calls the assclown.

Goes around asking questions then doesn’t answer any himself.

He is a FED shill Toad.

[TruthConquers]

should read: Calls people assclown.

[Toddsterpatriot]

You shills work real hard to keep the masses as uninformed as possible.

I don't think it's possible for you to be anymore uninformed than you already are. Good job!

[TruthConquers]

At least, I am NOT as uninformed as YOU, silly Toady.

[Toddsterpatriot]

In what form was the collateral returned?

Do you understand how collateral works? You give the Fed bond #2279862 worth $100 million and they loan you $90 million, for example. When you repay the $90 million, with interest, the Fed gives you back bond # 2279862.

The phrase "turned it into cash" is just an expression.

[Toddsterpatriot]

Thanks. Some Freepers get upset when I post facts that conflict with their feelings.

[maggief]

“In another twist highlighted by the statement from Sen. Sanders’ office

Nice source you have there, comrade. LOL!”

I have researched ... what 50 or so links from varying sources. Many, many details are still missing, and I post what IS available, regardless of the source. Making matters more difficult are FR restrictions on Bloomberg reports. As you should know by now, Bloomberg, who is doing most of the current reporting, sued the Fed for disclosure. To skirt the issue, I’ve had to use blogs and yes, even Socialist Saunders’ website.

Moving on ...

[Minus_The_Bear]

Uh... actually you seem to be pretty stupid.

Yeah, I trust some yokel over Bloomberg News.

[TruthConquers]

Hey, Toady!

YOU haven’t answered the question:

And what pray tell, was the collateral, because that has NOT been disclosed, FEDshillToad.

http://www.zerohedge.com/article/presenting-complete-fed-discount-window-data-dump
“Our very preliminary question is whether the Fed really expects the US public to believe it does not keep track of the collateral it lends Discount Window money against, and if that rhetoric question is false, then why is collateral data not disclosed?”

[Toddsterpatriot]

I could explain the problems with this theory....

low-interest loans from the Fed — effectively borrowing money for virtually no interest from the central bank, then loaning it to the U.S. government for a big profit at taxpayer expense.

But you probably wouldn't appreciate the explanation.

[TruthConquers]

YOU post facts!!!!?????

hahahhahahahhahahahhahahahahhaha!!!!!!!!!!!!!!!!!!!!

[DannyTN]

He is responsible for the housing market to become a bubble. He kept rates too low, to create it.

First of all, Housing didn't cause the economic down turn. Mortgages take it on the chin in every market downturn. And they get termed bubbles after the fact. Go back and read the write ups on the financial panics of the 1800's when we were on the gold standard and how many of them were labeled "real estate bubbles".

What caused the economic downturn was:

• the Oil Price shock. We've sat on our hands since the 1970's and did nothing to prevent the next oil price shock and it finally came.
• Banking greed with regard to credit cards. They bumped rates to usurious levels because they could forcing a lot of their customers into bankruptcy. Unwise, but they did it to themselves.
• Unwise government trade policies that seek to take advantage of the slave labor rates of communist China, but failed to recognize that we are trading our manufacturing base in return for cheap consumer goods due to an unlevel playing field.

Those three are the biggest factors involved in the economic downturn. Mortgages were simply the canary in the coal mine.

And

• Greenspan didn't vote in Congress for the CRA, which I think is actually a sensible bill though perhaps hijacked by ACORN. It's not the monster it was made out to be.
• Greenspan didn't have oversight over Freddie Mac or Fannie Mae.
• The SEC not Greenspan had oversight over derivative products (securities), but didn't use it.
• The FDIC not Greenspan had oversight over banking's use of derivative products and Credit Default Swaps to mitigate their risk, but didn't adequately look at it.
• And Greenspan retired in Jan 2006.

[maggief]

I think I’ve asked that question a number of times.

{{{crickets}}}

What a surprise. Not.

[Minus_The_Bear]

I still haven't seen a single fact posted by you.

Only "Ben Bernanke said"

&

Look at this Fed .gov website.

[TruthConquers]

You’ve got that right.

Anything that doesn’t further his agenda, “keep the public clueless” he just won’t touch.

[TruthConquers]

Blah, blah blah, blame congress, the FED is innocent, blah, blah blah.

THE FED WANTED TO BE THE CENTRAL BANK, no if ands or buts about it.

They are the heroin dealer, they gave this country the heroin, and they keep them supplied. Is it any wonder they are hooked after 98 years? Really?

Your loooonnnngggg post still doesn’t answer the above.

YOU are surprised that congress is hooked on free money? How insane is that?

[DannyTN]

"YOU are surprised that congress is hooked on free money? How insane is that?"

The FED hasn't been supplying Congress with free money. And the money Congress borrows is not free, they pay a substantial amount of interest on it. But that doesn't stop Congress.

That's the point. Congress can borrow on the gold standard just as easy as they can borrow with the Federal Reserve in charge of the money supply. It wouldn't bother Pelosi one iota to promise that your children would repay in Gold, as long as she can fly around the world on her government supplied jet.

Our citizens got lazy and started voting for either the most charismatic candidate or the one that promised them the most. And they failed to learn about the real issues. The end result is that they voted for people who have spent us into a position that is a little precarious. And none of that is the Federal Reserve's fault.

[TruthConquers]

Of Course it is free money, TO THEM!!!!

THEY DON’T HAVE TO PAY IT, WE TAX PAYERS DO!!!!!!!!!!!!!!!!!!

And you and your the FED is innocent is just LIES.
Do you deny that the FED WANTED TO BE FORMED IN 1913? DO you?

not their fault, what a bunch of baloney.