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Bernanke Provided Billions In Loans to Gaddafi

George Washington's picture




 

Documents produced by the Federal Reserve in response to an order
from the Supreme Court show that Bernanke loaned billions to foreign
banks through its discount window. As Bloomberg - which brought the
lawsuit which resulted in the document release - notes:

The
biggest borrowers from the 97-year-old discount window as the program
reached its crisis-era peak were foreign banks, accounting for at least
70 percent of the $110.7 billion borrowed during the week in October
2008 when use of the program surged to a record. The disclosures may
stoke a reexamination of the risks posed to U.S. taxpayers by the
central bank’s role in global financial markets.

 

***

 

“The
caricature of the Fed is that it was shoveling money to big New York
banks and a bunch of foreigners, and that is not conducive to its
long-run reputation,” said Vincent Reinhart, the Fed’s director of
monetary affairs from 2001 to 2007.

 

***

 

“The American people
are going to be outraged when they understand what has been going on,”
U.S. Representative Ron Paul, a Texas Republican who is chairman of the
House subcommittee that oversees the Fed, said in a Bloomberg Television
interview.

 

“What in the world are we doing thinking we can pass
out tens of billions of dollars to banks that are overseas?” said Paul,
who has advocated abolishing the Fed. “We have problems here at home
with people not being able to pay their mortgages, and they’re losing
their homes.”

Indeed, billions of dollars worth of loans went to Libya. Senator Sanders asks why we loaned billions to Libya:

 

Sen.
Bernie Sanders (I-Vt.) today questioned why the Federal Reserve
provided more than $26 billion in credit to an Arab intermediary for the
Central Bank of Libya.

 

***

 

Sanders also asked why the
Libyan-owned bank and two of its branches in New York, N.Y., were
exempted from sanctions that the United States this month slapped on
other Libyan businesses to pressure Col. Moammar Gadhafi’s government.

 

“It
is incomprehensible to me that while creditworthy small businesses in
Vermont and throughout the country could not receive affordable loans,
the Federal Reserve was providing tens of billions of dollars in credit
to a bank that is substantially owned by the Central Bank of Libya,”
Sanders said.

 

***

 

In the same letter, Sanders asked
Treasury Secretary Timothy Geithner why the Treasury Department on
March 4 let the Libya-controlled bank skirt the economic sanctions
against Libya.

 

The senator also questioned why the Bahrain-based
Arab Banking Corp. is even allowed to operate branches inside United
States. “Why would the U.S. government allow a bank that is
predominantly owned by the Central Bank of Libya – an institution on
which the U.S. has imposed strict economic sanctions –to operate two
banking branches within our own borders?” Sanders asked.

Previous information released by the Fed shows that foreign banks were also huge recipients of the Term Auction Facility commercial paper.

 

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Sat, 04/02/2011 - 09:45 | 1127709 blindman
Fri, 04/01/2011 - 17:51 | 1126704 Eireann go Brach
Eireann go Brach's picture

Americans don;t give a fuck, they have their head in the sand and only care about Jersey Shore reruns and episodes of the Bachelor..we need financial crisis round 2 to wake the people up in this country, only then might they get off their fat asses and hit the streets and show some outrage..my bet is they will stay in and watch on TV.

Fri, 04/01/2011 - 17:11 | 1126615 Hephasteus
Hephasteus's picture

Ya the wine is poisoned. Tainted with blood money and drug money. Best kill jesus and kick his out of his ceo position quick before he goes all sociopath on your ass.

Fri, 04/01/2011 - 16:58 | 1126582 anolmec
anolmec's picture

"Well, John the Baptist after torturing a thief
Looks up at his hero the Commander-in-Chief
Saying, "Tell me great hero, but please make it brief
Is there a hole for me to get sick in ?"
The Commander-in-Chief answers him while chasing a fly
Saying, "Death to all those who would whimper and cry"
And dropping a bar bell he points to the sky
Saying, "The sun's not yellow it's chicken"...........B.DYLAN

Fri, 04/01/2011 - 16:45 | 1126535 aerial view
aerial view's picture

So I guess it's alright for any American citizen to give a loan to Gadhafi and Libya now since Big Ben must have had the approval of Homeland Security, NSA, FBI, CIA, etc.

Fri, 04/01/2011 - 16:42 | 1126523 RockyRacoon
RockyRacoon's picture

Well, this development is something that we now know about.  Think about all the stuff that we still don't know.  

...and probably never will.

We're not half as angry as we should be.

Fri, 04/01/2011 - 16:15 | 1126396 Gutenburg
Gutenburg's picture

Until they feel the pain....but then they will be begging the gummint for help.

Fri, 04/01/2011 - 16:10 | 1126372 SilverFiend
SilverFiend's picture

It is time to shake the elite's cozy world.  America needs it's own fruit vendor to light the match.

Fri, 04/01/2011 - 16:36 | 1126507 tsx500
tsx500's picture

right  on 

Fri, 04/01/2011 - 15:25 | 1126120 Hook Line and S...
Hook Line and Sphincter's picture

This Libya rape is about perpetuation of the FRN compadres! The USDX hits 75.5 and the PTB know it's damn time to get Libya's 128 tons or so of gold on the open market.

Drive that AU price down and keep the FRN stable for a little longer. Keep that ponzi degrading at a slow controllable rate is the name of the game.

Besides that, they are pissed that the Feds 5 billion loan to the central bank of Libya went to buy more physical. 

Gaddafi, not wanting to play the fractional gold game, whereby losing the gold to the Anglos by sending his precious into the vaults of the beast, has now become a target.

The control of his light sweet crude is secondary to controlling his gold in this situation.

 

Fri, 04/01/2011 - 15:01 | 1126048 proLiberty
proLiberty's picture

It is time to end the Federal Reserve Corporation.

Fri, 04/01/2011 - 14:59 | 1126046 The Rogue Trader
The Rogue Trader's picture

Treason

Fri, 04/01/2011 - 14:58 | 1126043 bugs_
bugs_'s picture

Maybe muammar didn't pay it back or something

Fri, 04/01/2011 - 14:53 | 1126009 Bicycle Repairman
Bicycle Repairman's picture

The USA is a global empire with concerns outside of the borders of the USA.  Quite often those concerns are a greater priority than domestic concerns.  And it's really none of the people's business.

/sarc

Fri, 04/01/2011 - 14:56 | 1126002 virgilcaine
virgilcaine's picture

WS sold them damaged goods. Guess where all the toxic mortgage debt went ? Overseas.

Try and unravel that gordian knot known as the Shadow Banking system.

Fri, 04/01/2011 - 14:48 | 1125989 halflink123
halflink123's picture

And Bernie Sanders you lazy dolt, shut your yappering trap and start the impeachment proceedings already.  Talk is cheap you windbag.

Fri, 04/01/2011 - 14:46 | 1125982 Waterfallsparkles
Waterfallsparkles's picture

The FED, Bernanke is throwing the American Tax Payers to the Lions in the arena on behalf of Foreign Leaders like Gaddifi.

Fri, 04/01/2011 - 14:45 | 1125978 Cruel Aid
Cruel Aid's picture

Was it Shiela who kept this secret for all these years. FOIA nazi

Didn't O get a transparency award this week?

Fri, 04/01/2011 - 14:45 | 1125965 halflink123
halflink123's picture

Ron Paul, Jim Rogers, and the last great President Andrew Jackson are all correct - the Fed is a den of vipers.  With this, in my mind, Buffett has lost whatever little credibility he has left.

I can't believe that scumbag Bernanke hasn't been imprisoned, let alone impeached.

Unfortunately, the closer you look the easier it is to see corruption in all aspects of America  life, from the federal government to the state government to the local government to the private corporations and everywhere in between.  There are still good people in this country but they are turned into fodder for the ruling elite.  And the tea party is "extreme" for wanting to put a stop to this.

 

Fri, 04/01/2011 - 14:40 | 1125954 treemagnet
treemagnet's picture

Please come again, thank you for playing "America". 

Fri, 04/01/2011 - 14:35 | 1125933 whatz that smell
whatz that smell's picture

pigmen, bitchez!

Fri, 04/01/2011 - 14:24 | 1125880 raya123
raya123's picture

And we pay income taxes WHY????

Fri, 04/01/2011 - 14:12 | 1125825 Sathington Willougby
Sathington Willougby's picture

 

Conspiracy Theory the movie is now sequeled by

Conspiracy Fact - the reality series.

Fri, 04/01/2011 - 14:52 | 1125991 falak pema
falak pema's picture

After conspiracy-fact becomes conspiracy-double-act..the penny will drop...by then it will be conspiracy re-enact..without tact, but with brass tacks. Then the bemused 'of the people, by the people, for the people' crowd will realize they are the new Apaches...But will they act?..like the Frenchies..whom they despise...but who had the guts...yes, the guts...to take the Bastille..History lives on...not Fukushima mon amour...

Fri, 04/01/2011 - 14:04 | 1125787 SwingForce
SwingForce's picture

 

You need to realize that everything Obama, Geithner, & Bernanke do, they do for The Banksters. Many people have lost homes. Many more are paying inflated rates on inflated properties which the banks refuse to refinance. Savers are getting lousy rates on CDs, but are charged 10%-24% on a credit card. From the top of the credit menu board to the bottom, The Banksters have FREE REIGN to suck as much blood out of the middle class as they possibly can. It’s a criminal plan that TARP was paid for by The Taxpayers to save the banks from extinction, only for them to revive and viciously attack the hands that feed them. Henry Paulson should be charged with Treason for using The Taxpayers' Money to re-arm The Banks of Mass Destruction. Everybody is a victim, even the homeowner without a mortgage, his equity is dropping in its entirety; he's  losing more than the guy with a mortgage. Condos sit empty because banks don’t want to pay association’s maintenance fees, while those fees rise for the rest of unit-owners to make up the shortfall. The Banking Cartel is waging a war against every American Citizen, and it won’t be happy until every savings account is drained, every homeowner is broke & evicted, every credit card holder is paying 24.9% + $88/ mo. in overlimit and late fees, and every house is in their possession. Even the foreclosure process is financially draining for the owner, with insurance and electric payments continuing until property is taken out of owners’ name, an average of 2-3 years. (Upon repossession, the bank doesn’t book the loss until resale, artificially covering-up insolvency issues). Wake up people, its not us against each other, its Us vs. The Banksters who run their operation with impunity.

 

Further details of the covert TARP program, “Where the Bailout Went Wrong”, by Neil Barofsky:

 

http://www.nytimes.com/2011/03/30/opinion/30barofsky.html?_r=1&scp=1&sq=barofsky&st=cse

 

Fri, 04/01/2011 - 14:15 | 1125844 moneymutt
moneymutt's picture

+1000, totally agree, we are being screwed by bankers, FED and Wall Street captured Congress/Presidential admin. And neither of our political party "representation" is doing a thing about it.

Fri, 04/01/2011 - 14:09 | 1125762 moneymutt
moneymutt's picture

And what of the states and cities and towns...the FED won't save their budgets by giving them low interest loans, they have to go to bond market....but Q, he can get cheap loan...unbelievable. Imagine how much less trouble states would be thru this worst crisis in decades, if they had to pay no interest on their loans for a few years.

Rich people can keep getting their tax cuts they never needed before 2001, even in a time of war on worst economy since 30s, war and terrosist threats and foreign leaders can get very cheap money from our printing press...but our city and states can get no help, not even the fairly solvent ones, homeowners get squat, and we must cut teacher and cop salaries, cut Social Sec and Medicare benes etc....BS...

Fri, 04/01/2011 - 13:55 | 1125755 threefingerscam
threefingerscam's picture

Now we know the real reason BB and the Fed wanted this information to be secret.

Not so much to protect banks who might not come back (but honestly, if they are going under they will come anyway), but to prevent disclosure of this embarrassing gifting of US taxpayer money to foreign entities.

 

Fri, 04/01/2011 - 13:54 | 1125742 moneymutt
moneymutt's picture

just think of all the US people that are quietly, diligantly paying their mortgages, often on houses that are underwater, have good FICO scores and jobs, and yet can not refi to lower interest rates...No Discount Window For You...but third world dictator thug plane blowing up crazy men, now there is a good lend money for nothing.

How about the small businesses that run their businesses off credit cards, would they love some discount window action.

And all the money that could be saved if regular Americans and small businesses could get cheap money, where would the money end up? In the American economy.

Our money print to give low/no interest loans to foreigners while we get raped and pillaged by our big banks, brilliant...

Fri, 04/01/2011 - 13:13 | 1125559 gordengeko
gordengeko's picture

Unless you have snooki do a public service announcement during american idol, this news won't matter.  Sad but true.

Fri, 04/01/2011 - 13:25 | 1125608 whstlblwr
whstlblwr's picture

You know who gets it. Alec Baldwin. He'd be good president. He's critical of Obama, and mad at nuclear bullshit

If we want to create change, we can start it. Or we have discussion on who we choose for president. Then we get them on ballot. I nominate Baldwin. If agree with me, everyone try to contact Baldwin, let's get his name on the ballot.

Fri, 04/01/2011 - 15:13 | 1126106 lincolnsteffens
lincolnsteffens's picture

Please, not a Hollywood re-distributionist.

Fri, 04/01/2011 - 14:07 | 1125796 DosZap
DosZap's picture

NEGATIVE,

Alec Baldwin is an insane ass, fits right in with the Left Wing he LOVES.He's so far up the Lefts ass he can't breathe.

I would like 5 mins w/him alone.

Fri, 04/01/2011 - 14:47 | 1125974 dexter_morgan
dexter_morgan's picture

+++ Alec Baldwin for president? WTF, though the media would love it with all those equally crazy brothers of his pullin shit all the time it would be a reporters wet dream.

Fri, 04/01/2011 - 15:48 | 1126307 whstlblwr
whstlblwr's picture

Dude is smart. Ever see him on those political shows? I like way he handled yelling at daughter. Not Sheen crazy at all, crazy like fox. Brothers would be bonus, fun to watch.

Ben Affleck good to, but he's too nice. Anyone reading blog who's important, nominate Alec Baldwin. He can run independent. Or new party, Tea Party Liberate. The tea party now is social vise grip, I don't care what womans do to her body, or if Doszap want sex with man. Want fiscal balance, clean air to breathe, thrive place for business.

Fri, 04/01/2011 - 14:46 | 1125980 WALLST8MY8BALL
WALLST8MY8BALL's picture

Billy Beer could make a comeback!

Fri, 04/01/2011 - 14:47 | 1125985 dexter_morgan
dexter_morgan's picture

Billy weed, or Billy crack maybe this time around......lol

Fri, 04/01/2011 - 14:40 | 1125953 Monday1929
Monday1929's picture

Why do you want to have sex with the Alec Baldwin?

Fri, 04/01/2011 - 15:39 | 1126266 whstlblwr
whstlblwr's picture

A quickie!

Fri, 04/01/2011 - 13:43 | 1125700 NotApplicable
NotApplicable's picture

Yeah, if we only give the gun to the New & Improved, benevolent dictator, then everything will be all better.

The change you need is to abandon those apathetic views known as being an "informed voter," and realize that nobody is your "representative."

Either take responsibility for you own life, or keep your head in the sand while you roast your ass in the upcoming political hell on Earth. You empower others over you at your own peril. Worse still, you attempt to empower them over me, something which you have no right to do.

"There comes a time to put away childish things." -- St. Paul

www.regenerationx.org

Fri, 04/01/2011 - 13:49 | 1125718 whstlblwr
whstlblwr's picture

I see it's just community of whiners.

Fri, 04/01/2011 - 13:50 | 1125724 NotApplicable
NotApplicable's picture

Are you wholly unaware that the US gov was taken over by a coup in 1913?

You can play their political games all you want, but thanks to the banksters chokehold over our currency, you cannot win! EVER!

The only winning move to this game, is to walk away, and refuse to play.

Fri, 04/01/2011 - 13:32 | 1125630 massergy
massergy's picture

+1

After witnessing the first 15 minutes of "Glengarry Glen Ross", I'm down.

Fri, 04/01/2011 - 14:47 | 1125977 WALLST8MY8BALL
WALLST8MY8BALL's picture

Put the coffee down

Fri, 04/01/2011 - 13:41 | 1125692 whstlblwr
whstlblwr's picture

Tyler, can we get a thread going for this purpose. ZH community nominates a President.

Fri, 04/01/2011 - 13:44 | 1125708 falak pema
falak pema's picture

but, but, but...we have our own GW! to propose...

Fri, 04/01/2011 - 15:54 | 1126330 Irwin Fletcher
Irwin Fletcher's picture

I'd vote for Tyler.

Fri, 04/01/2011 - 15:57 | 1126342 whstlblwr
whstlblwr's picture

Probably me too, who is he/she?????

Fri, 04/01/2011 - 13:02 | 1125523 kaiserhoff
kaiserhoff's picture

Bernie Sanders (Socialist) Vermont.  Even Bernie, for a time, admitted that much.

Fri, 04/01/2011 - 12:58 | 1125513 falak pema
falak pema's picture

But then loans to Q-daffy is natural...he is the true role model for the Oligarchy : oil baron, armaments buyer, dynastic head, terrorist, he even loves bunga-bunga. We don't know how to admit it in a 'nominal' democracy. But we'll get there...

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