Skip to comments.Germany’s Deutsche Bank, Again in Trouble, Received a U.S. Bailout Twice as Big as Lehman Brothers
Posted on 10/05/2016 10:29:33 AM PDT by Lorianne
The gyrations in Deutsche Banks shares last week together with a June report from the International Monetary Fund indicating that the bank was the most important net contributor to systemic risks has cast a trading pall over all of the global banks.
Against that backdrop, most Americans would be stunned to learn that the German Deutsche Bank, which perpetually finds itself on the wrong side of the law, was bailed out in five separate U.S. emergency lending operations during the 2007-2010 financial crisis, receiving more than twice the emergency financial assistance as that received by Lehman Brothers, the failed U.S. investment bank.
According to the Government Accountability Office (GAO), Deutsche Bank received cumulative loans totaling $77 billion under the Federal Reserves Primary Dealer Credit Facility (PDCF) and $277 billion in cumulative loans under the Term Securities Lending Facility (TSLF) for a total of $354 billion. Lehman Brothers received only $183 billion in Fed emergency lending programs according to the GAO report. (See GAO chart below.) These loans were made at below-market interest rates, thus constituting a bailout.
As Senator Elizabeth Warren explained to her colleagues on the Senate Banking Committee on March 3 of last year:
Now, lets be clear, those Fed loans were a bailout too. Nearly all the money went to too-big-to-fail institutions
Those loans were made available at rock bottom interest rates in many cases under 1 percent. And the loans could be continuously rolled over so they were effectively available for an average of about two years.
(Excerpt) Read more at wallstreetonparade.com ...
Too Big To Fail = Too Big To Exist
Why would a German Bank get a U.S. Bailout? So stupid.
How can this happen? With Germany trying to dictate EU policy to the UK, France and everybody else? Could they have forgotten to wash their own dirty laundry?
The Term Securities Lending Facility involved overnight loans fully collateralized by Treasury securities. You put up $10 billion in Treasuries, borrowed $10 billion at 5 PM, and paid if back at 9 AM the next morning. So if you add up all the days, yes, they borrowed $277 billion, but that is not what most people would consider a bailout.
The liberal/progressive/statist crony capitalism mentality.
Bailouts hide the fact that this ideology fails every time. Kicking the can down the road is only going to make the inevitable, much, much worse. This mentality is much worse than a mental disease.
It was a "loan."
See post 5 - it really was a series of tightly-controlled loans.
I think we can still turn it around, but sometimes it seems like the Globalists have won, the New World Order is here, we have Global Government, and the rich guys who own, and profit from, our Federal Reserve also own and profit from Deutsche Bank and all the other Central Banks.
How does the migrant influx play into this Deutschbank situation? All those Muslim immigrants are no good for the German economy. What is bad for the German economy, I assume, is bad for Deutschbank. American taxpayers bail out Deuthscbank because of indirect effects of Muslim immigrants in Germany. Is my logic faulty?
Did Deutsche Bank ever repay any of those “loans?”
You mean... they ran out of other peoples money again!?
how is that possible, that “never” happens with socialism!
Yes, this was years before the current Euro migrant crisis. Perhaps look at the US gov't forcing lenders to provide mortgages to people who were known not to be able to service those mortgages. That precipitated the whole cluster**ck (IMHO).
Well, no bias there... /s
It was the American subsidiary, which is a large financial institution in the US.
Yes, they were all repaid in full.
So what they are saying is that they had a kid that went bankrupt, so Dad wrote the kid a check to keep the collection agencies away.
And...the kid took the money and gambled it on a 100:1 longshot.
Guess what? The longshot did not come in. Now they owe twice as much.
Not defending the government or DB, but they gave the foreign bank a bailout because of their ties to US and their loan markets here.
There are plenty of DB employees in the US.
EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
Mon Dec. 21, 2009 12:23 PM PST
The price tag for the Wall Street bailout is popularly put at $700 billion---the actual size of TARP--the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.
To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.
Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokeragesas much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.
Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."
GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.
LONG READ---go to web site to read more and checkout the shocking financial charts.
“Why would a German Bank get a U.S. Bailout?”
Deutsche Bank is one of the primary lenders for building new hospitals and new hospital facilities in the USA. If they leave the market then it’s going to be hard to find anyone interested in taking on these loans for hospital companies that may well be nationalized (national health care) before the loans are paid off.
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