Barclays' Joseph Abate Laments The Disclosure Of The Fed's Commercial Paper Facility Rescue Details

Tyler Durden's picture

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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Oh regional Indian's picture

"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."

Ironically? I'll say, Super ironic that the Fed cannot hide that particular shennanigans again. Of course it has other she-nanny-guns to use off the USTaxP's tired shoulder, but hey, what's a trillion between friends? Especially monopoly trillions?

The hypocrisy is stunning.


Ragnarok's picture

OT: The Fed Has a $110 Billion Problem with New Benjamins

the not so mighty maximiza's picture

I was actually surprised to see this out of becky quicks squawk box

Crime of the Century's picture

I know Einhorn has some haters in the house, but he was awesome guest hosting on SB this a.m.

Loved it when Kernan said "if Stiglitz says something stupid our guest will be all over him". Oof. Of course, this was right after Einhorn beclowned former Fed Gov Larry Meyer.

Sudden Debt's picture

good way to prevent the markets being flooded with their newly printed money :)



firstdivision's picture

It's all Timmy's fault.  If his signature was not so elaborate, then the printers could handle it.

Crime of the Century's picture

Crayon's a bitch to miniaturize...

Snidley Whipsnae's picture

"Sorting such a huge quantity of bills by hand [in order to eliminate the bad bills], the officials estimate, could take between 20 and 30 years."

If Benny really wants to do something to increase employment he could hire a few hundred thousand people to sort through the new hundred dollar bills. I will work on this task sans pay....simply a small per centage of the bills I cull. :)

FreedomGuy's picture

With this complexity in printing new bills with it soon cost more to print the money than the money is worth?

Sudden Debt's picture

Stockholm Syndrome is a bitch...

jakethesnake76's picture

We all have the S Syndrome it's what gives the controllers control , and yet they are also controlled , Waking up from that control is hard and hurts when the light shines in lol

Spartan's picture

In a similar vein (Investment Banks and the "system") more news on the muni bid-rigging case, with another arrest last week:


Followed this earlier in the year:

the not so mighty maximiza's picture

They can't even print the money right

doggis's picture

the man is a prick

Spalding_Smailes's picture

Uh oh.




Wikileaks, fresh from angering US authorities, might be about to incur the wrath of China’s economic establishment. The controversial site has published a US embassy cable containing comments made in 2007 by Li Keqiang — then head of the Communist Party in Liaoning and now the man some tip to become the PRC’s next head of government.

The cable was published as part of last week’s massive release of American diplomatic transcripts — and was just spotted by Malcolm Moore at the Telegraph.

The relevant bit of the cable, below:

Describing some of the challenges he faces as Party Secretary, Li related that despite brisk economic growth of SIPDIS 12.8 percent in 2006, Liaoning’s income gaps remain severe. Liaoning ranks among the top 10 Chinese provinces in terms of per capita GDP, yet the number of its urban residents on welfare is among the highest in the country and average urban disposable income is below the national average. By contrast, rural disposable incomes are above the national average. Even so, incomes for Liaoning farmers are only half that of urban residents.

¶4. (C) GDP figures are “man-made” and therefore unreliable, Li said. When evaluating Liaoning’s economy, he focuses on three figures: 1) electricity consumption, which was up 10 percent in Liaoning last year; 2) volume of rail cargo, which is fairly accurate because fees are charged for each unit of weight; and 3) amount of loans disbursed, which also tends to be accurate given the interest fees charged. By looking at these three figures, Li said he can measure with relative accuracy the speed of economic growth. All other figures, especially GDP statistics, are “for reference only,” he said smiling.


gwar5's picture

More evidence how extensive and pervasive the La Banka Nostra really is.

honestann's picture

Just for the record... not everyone is a victim of Stockholm Syndrome.  Some of us have been wanting the FederalReserve and banking system to collapse for decades.  I can't recall ever defending them in any way whatsoever.  Nonetheless, that statement is almost true.