Barclays' Joseph Abate Laments The Disclosure Of The Fed's Commercial Paper Facility Rescue Details
As Zero Hedge demonstrated last week, comprising the list of international banks rescued by the Fed's Commercial Paper Funding Facility were at least 35 foreign financial corporations. Among these, Barclays was near the very top in terms of capital funded from US taxpayers to preserve the bank's solvency. Which is why we were not at all surprised to read that Barclays' chief rates strategist Joseph Abate had a very sour view of the Fed's release of CPFF details "ironically, the same legislation that forced to [sic] the Fed to disgorge details about these 21,000 transactions makes it much harder for the Fed to recreate these facilities by limiting its ability to use the "exigent circumstances" clause of the Federal Reserve Act." Actually, what we find ironic is that Joseph Abate, formerly a major shareholder of Lehman Brothers, and subsequently assimilated by the British Bank, would be a defender of ongoing Fed secrecy: we have the sinking suspicion that Abate's share losses in his Lehman stake were sizable (as in wiped out), and had he had some transparency into what the true state of affairs of his then bank was, he may have had a chance to actually recoup or mitigate some of his catastrophic losses... But such is life for the sufferer of Stockholm Syndrome, whereby each and every one of us has been kidnapped and held hostage by the banking system. The only question is how friendly (and compensated) we decide to be with our captors.
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