Posted on 04/01/2011 6:25:39 AM PDT by 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.
(Excerpt) Read more at online.wsj.com ...
And, PLEASE DO NOT pull the switch on this thread. It is full of important links.
(Perhaps that is someone’s intent.)
So a long as the interest was above the inflation rate for the period the loans were outstanding, then the country is richer for having made the loans. Plus they helped mitigate a world wide financial crisis.
I applaud the FED for these actions.
Was Bernanke sworn in?
2009 Combined Federal Reserve banks - Independent Auditor Report on Page 3
2009 Federal Reserve Board financial statements - Independent Auditor Statement Page 2
Financial Statements of the Federal Reserve Banks (Combined and Individual banks)
Who was Obama’s bagman in Tripoli? Someone had to go to Libya to collect Obama’s cut.
There's a document dump at http://cdn.gotraffic.net/downloads/30110331_fed_release_documents.zip.
I have just started looking through it, but it's going to take a long time.
“All the loans were repaid with interest.”
How were they repaid? What happened to the junk bonds, defaulted debt, securities of unknown ratings and stocks that were turned into cash?
And, please provide a link.
The loans were probably made at the discount window rate, but even if the rate was low, they were short term loans, and the total amount of the loans relative to the size of the economy were not excessive given the crises that was going on.
Yes, you bet, I'm applauding. Well Done FED!!!!
Well, really?
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?”
The comment that they were all repaid with interest is in paragraph 7, the one that starts with "David Skidmore".
Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak
The following page is a summary of the data they released and has a link to the more detailed data.
That doesn’t answer either question. See also post #90.
Quelle Surprise! Fed Lent Over $110 Billion Against Junk Collateral During Crisis
In another twist highlighted by the statement from Sen. Sanders’ office, it turns out that the Libyan-owned bank was using U.S. Treasury securities as collateral for the 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.
Of course, countless banks were using that same strategy to rip off taxpayers, as reported by The New American last year in a piece exposing the central bank’s manipulation of markets. But the Arab bank was unique in that it was partly owned by the Libyan dictatorship — a regime supposedly under strict U.S. economic sanctions.
Applause???
http://sanders.senate.gov/newsroom/news/?id=ECE720E4-D5D6-4EFF-937C-DCADA784C3F9
In another dubious twist, the Fed loans, at interest rates as low as 0.25 percent, relied on U.S. Treasury securities as collateral. In other words, at the same time that the Arab Banking Corp. was borrowing money at almost zero interest from one arm of the government, the Fed, it was lending money at a higher interest rate to another arm of the U.S. government, the Treasury Department.
If only banks that keep reserves at the FED can get discount-window credit, would not the reserves themselves serve as collateral?
They were essentially insolvent, what reserves/ They had NONE, that is why the system froze up. THEY WERE ALL BANKRUPT.
When they took the TRAP money, they needed REAL collateral to get it. Otherwise, it is just money laundering.
TARP is a TRAP, and I know I used a different spelling.
They weren't insolvent, they were having a liquidity crisis. There is a difference. They had plenty of assets they just weren't assets that they could liquidate quickly to meet the demand for withdrawals.
And they probably had reserves, they just didn't have EXCESS reserves that they could draw out without being in violation of the Reserve requirements were.
Everbody feel safer now that the democrats rule?
Wonder how many will vote this next election?.
So, how many banks has the FDIC had to close now?
And let’s see, they ran out of money sometime ago, too?
Yes, indeed they most certainly were telling us how they were running out. And how many banks are on their list to fail? Hundreds?
You shills work real hard to keep the masses as uninformed as possible.
DEBT slavery is NOT capitalism.
And the dollar is below 76 today, fancy that.
CROSSLINK to another thread:
http://www.freerepublic.com/focus/f-news/2698259/posts
Foreign Banks Used Fed Secret Lifeline Most at Crisis Peak (abuse of taxpayer money)
Bloomberg/Businessweek (web link only) | 01-April-2011 | By Bradley Keoun and Craig Torres
Posted on Friday, April 01, 2011 12:24:46 PM by topher
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