The Fed Bailed Out A Libya-Owned Bank

Tyler Durden's picture

Here's one for the WTF files. While it is neither a secret that back in 2009 America had a thriving relationship with the world's suddenly most hated man Moammar Gaddafi (see "Obama is the first U.S. president to shake Gaddafi's hand") only to turn around and bomb him, nor is it surprising since after all when it comes to oil our administration will do anything and everything to procure it, no matter how many Nobel peace prizes are trampled in the process, it may come as a surprise to some that a bank majority owned by the Libya Central Bank, was the direct recipient of US taxpayer largesse in the form of discount window borrowing. Bloomberg writes that Arab Banking Corp., a lender part- owned by the Central Bank of Libya,
used a branch in New York to borrow at least $5 billion from the U.S.
Federal Reserve as credit markets seized up in 2008 and 2009. Indeed a quick word search through the compiled daily releases will confirm that the Fed dispersed funds to the Libya-owned venture on well over 30 occasions. And while we have querried in the past how it is possible that various Libyan financial interests managed to get past domestic Anti Money Laundering provisions, when it comes to direct funding from taxpayers would it be too much to ask of Ben Bernanke not to transact with institutions operating on behalf of various so-called tyrants, mutants and, broadly, Antichrists?

More from Bloomberg:

The bank, then 29 percent-owned by the Libyan state, drew $1.1 billion from the Fed’s so-called discount window in October 2008, Including $450 million during the week when hundreds of financial firms drew a record amount of emergency funding from the U.S lending program, according to data released by the Fed today. Arab Banking Corp. also owed about $4 billion to the Fed under other bailout programs in the fall of 2009, data released in December show.

The U.S. government has since frozen assets linked to the regime of Libyan ruler Muammar Qaddafi and engaged in air strikes against his military forces as they battle a rebel uprising in the North African country. Arab Banking Corp. received an exemption that allows the firm to continue operating while prohibiting it from engaging in any transactions with the government of Libya, according to the Treasury Department.

Libya’s stake in Manama, Bahrain-based Arab Banking Corp. increased to 59 percent in December 2010, the company said on Dec. 2.

David Siegel, treasurer of Arab Banking Corp.’s branch on Park Avenue in midtown Manhattan, declined to comment when contacted. The bank’s board is chaired by Mohammed Hussain Layas, chief executive officer of the Libyan Investment Authority. The CEO is Bahrain-based Hassan Ali Juma.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
AN0NYM0US's picture

To finance the many parties on St. Barths with celebs such as Beyonce, 50cent, Usher, Mariah Carey et al.  they don't come cheap


Mariah Carey has spoken out on the accusations that she received money to perform at a private party paid for by the family of Libyan dictator Muammar Qaddafi.

In an official statement, the singer admitted that she received the payment to perform in St. Barts on New Years Eve 2008 and admitted that she was foolish to do so.

the mad hatter's picture

The Fed seems to be bailing out everyone but me.

CitizenPete's picture

Party music and hookers financed by the Bernake, no doubt.  

Bicycle Repairman's picture

$1.2m to party with Beyounce for 1 hour?

Well worth it.

prophet's picture

Fed is AML exempt?

Zero Govt's picture

Yes of course Benny skips legislation, silly question really. Those who make the law are above the law, very easy to understand

You make the law based on a 0.0001% nominal chance (drug runner or terrorist) and you apply it to 99.9999% of innocent people.

What you do not do is apply it to the elite 0.00001% who are allowed to commit mass national fraud (mortgages) or apply it to the 0.00001% who are actually terrorists (Libya who blew up a passenger plane and armed the IRA)

No, no, no. The Bernank ignores all national financial, criminal and terrorist Laws and indeed goes a wee step further, he funds them. Yes Bernank rewards the fraudsters and terrorists with $billions of freshly minted Benny Bucks and the SEC stays as quiet as a Church mouse happy surfing for midget porn

The law, politics and BS ....sooner they're all gone the better

CitizenPete's picture

Meanwhile your traced on any transaction over $9K, you have to fill out reams of paper (with a call into the DOJ) to buy a pistol, and you get your balls and bunghole massaged by the TSA to get on a plane flight.   


God save the Fed!


We're all living in Amerika, Amerika, it's wunderbar.




Zero Govt's picture

cues at airports is one of my 'favourite' topics... also cues at traffic lights, cues at banks, cues at zombie (zebra) crossings... where do cues (bottlenecks) form? Everywhere Big Govt and Big Corps are because first they're too incompetent to process efficiently and second they love the feeling of power engendered by waisting other peoples time and treating them like cattle 

remember a Passport was insisted on by the State to prove who you were. But to whom? The State itself! But of course the 0.00001% who are criminals and terrorists are expert at faking Passports. So 99.9999% of the population carry this worthless piece of shit around and the State is no closer to catching the 0.00001% (ie. Passports are 100% redundent) 

the State is so bloody incompetent it has no idea who the 0.00001% of terrorists and criminals are so it checks 100% of people going through airports. That's because the onus is now on 99.9999% of the people to prove you're not a 0.00001% criminal or terrorist to the State because the State is too f'n dumb to find out itself and has to treat 99.9999% of people like they are ALL potential threats

Government, the dumbest fuking institution on the planet 

PicassoInActions's picture

They ask the money in advance - they knew one day we will bomb them, and they had to be prepared at our own expence.


OpenEyes's picture

I think the next couple of days will be interesting as more of this type of stuff comes out of the ridiculous amount of pdf's released by the Fed.  You just know that there are quite a few little stinkers like this buried in there.

This one will probably get picked up by some of the MSM just because of the amount of 'buzz' with Libya right now.

FunkyMonkeyBoy's picture

Criminality beyond all imagination...

... and the people sit idle while allowing themselves, their children, and their children's children to be financially raped. People will take anything. Proven.

luk427's picture

How can they see anything when their heads are burried in their crackberries waiting for the next text message. The heard is being led over the cliff.

EvlTheCat's picture

I would like to see your radical credentials where you are on the tireless front fighting the FED and the hypocrisy of the U.S. government?  Please?  No, honestly! Are you an automaton who sits in an ivory tower pointing fingers at everyone else hoping you will whip us up in such a frenzy that they will actually start the burning?

Lead by example or STFU!

If I had to guess you are probably PrintingPress Ben mocking everyone while stroking your inkjet under your desk!  Daring the people to try and stop you.

You are redundent..

aerojet's picture

Dude, what are we supposed to do?  The outrages come so fast and furious that is impossible to even keep them straight in our heads.  Now you want a country half full of people who possess a 6th grade reading capability to actually do something useful with all of this information?  You're asking for too much.

john milton's picture

"I love the smell of fresh money in the morning. Smells like... bail-out. ...

Youri Carma's picture

Remember we're on the side of al-Qaida now!

Al Qaeda Leader Dined for the Pentagon Just Months Soon after 9/11

Al-Qaeda 100% Pentagon Run

Funny details: British Army tells its soldiers to bribe Taliban with 'bags of gold'

Afghanistan: Troops Guarding the Poppy Fields and providing them means LulZ

Boilermaker's picture

How very gentlemanly and magnanimous of the Fed.  Bravo chaps...bravo.

What did they put for collateral?  Oh, that's not pertinent.  Move along now.

Can this get more surreal?

Rainman's picture

No wonder the Fed fought like hell to keep secrets. These banksters are all kissin' cousins, no matter their country of "official" operations. Their wallets are wired together at the hip.

Dr. Porkchop's picture

So this little war is about securing oil, and mopping up the dirty little secrets they know 'ol Gaddafi had on them.

Hedgetard55's picture

So, Barry can't produce a certified birth certificate, now it turns out his SSN is fake. Only an idiot would be surprised at this.


The  worst thing is that he allowed a military officer to go to jail over Barry's legitimacy to be CIC, and now it turns out the officer was right.


Barry in an orange jumpsuit for life? We can only hope.



Mr Lennon Hendrix's picture

It is all being done on purpose to discredit the United States of America as a form of governemnt so corporations can rule the world.  Soon this country will be the United States of Nike.  It's gotta be the shoes.

Hedgetard55's picture

Mr. LH,


     I miss your little stories. You were my inspiration for the stories (well, only 3 so far) I threw on here about Bernanke hiding out in the NYC sewer system!

Mr Lennon Hendrix's picture

Thanks Hedgetard.  Honestly [sigh] I have had a hard time with the comic relief lately.  A whiteness (the term for a flock of geese) has shat all over my comic relief.  Having a little difficulty laughing off Fuk and WW III.  Anyway, thanks again, and please direct me to your stories, I have not read them.

Hedgetard55's picture

Well, I threw them kind of randomly onto some ZH articles so I don't remember where now, but I will pick one of your entries/posts in the near future and put them under it.

Abitdodgie's picture

The UNITED STATES OF AMERICA (all caps) is a registered corporation and Obama is the CEO that is why he does not need a ssn because it is a privately owned corporation. It has nothing to do with the real United States of America , they just make you think it is the same thing. 

Mr Lennon Hendrix's picture

Yes, but I will add that they would prefer to pay us all in stock options and do away with all currencie, soveirgn rights, and all that jazz.  They want to come out of the shadow and make it known that they own us.  It is true that the US government is  a corporation, that voting does not matter, etc, but they still do not like that we try to make our points.  They would rather we shut the fuck up. 

PuppetRepubl1c's picture

hmm, it appears to me this has already happened.  All legislation that is written is prepared by corporations/lobbyists, unless you think the average congressmen who golfs 8 hrs a day also has time to write up 3,000 page legal documents.


The congressmen don't even read the bills anymore, i suspect they stopped doing that decades ago.!



Mr Lennon Hendrix's picture

Yes, it is true.  But imagine when the US government can not pay its debt, so JP Morgue becomes the last lender of resort.  What happens when the Fed fails its mandates and Goldman Sachs owns all the bills and bonds.  This is the end goal.  Do away with all goverments, and create a rise of firms.

tekhneek's picture

Tyler, did anyone convert the PDFs to raw text yet on your team? I can do that... we need a normalized database of this to crunch as a community.


bogey4's picture

"...would it be too much to ask of Ben Bernanke not to transact with institutions operating on behalf of various so-called tyrants, mutants and, broadly, Antichrists?"

Would there be any banks left?


Mr Lennon Hendrix's picture

None of this matters since the Bernank and the Fed are making a shit tonne of dollars (that is a viable metric for dollars I think) back on their investments.  Make us that money Bernank!  Make us that money!

tekhneek's picture

You're implying that they loaned this money out because they intended to profit?

Mr Lennon Hendrix's picture

That or Obama likes shaking something else of Gadaffi's.

knukles's picture

Nope, not at all.

They loaned it out so the folks to whom it was loaned could directly or indirectly spend the funds buying assorted products on or off the black markets, made by American companies or affiliates thereof, profits and salaries accruing thereto ultimately manifesting themselves in financial transfers, legal as he day is long, known as campaign contributions.  

Thence,  repeat, continue, wash, rinse, whatthefuckever. 

Mr Lennon Hendrix's picture

Exactly.  Got to keep that money flowing.

knukles's picture

Moreover, t'would seem that if it were a private (giggle, giggle, snort, snort) organization unaffiliated with and not overseen by any governmental body, unaudited and with the power to create money to boot, the fucking organization would now be under investigation (announced loudly by the government for all far and wide to hear for populist political public attention) for financing terrorist activities.

Go get 'em folks.....
If I were a wise politician, I'd be loading up the ammo to side with the Pauls, et al right now, because this is gonna get ugly.  No wonder they fought so bloody tooth and nail to not disclose diddly squat.

And, just what the fuck was the collateral presented against these loans?  Not enough wire-able fucking securities in existence to take in on an eligible basis.

Urban Redneck's picture

There are a number of large legitimate industries that calculate bank deposits by the weight of the transaction (e.g. public transit).  The problem for the Bernak is that a digital dollar has no weight and is thus worthless.

Dr. Porkchop's picture

 when it comes to direct funding from taxpayers would it be too much to ask of Ben Bernanke not to transact with institutions operating on behalf of various so-called tyrants, mutants and, broadly, Antichrists?


But those are his best customers.

AUD's picture

Hardly surprising.

Did you know that throughout the entire Cold War the Eurodollar deposits of the Soviet Union were in fact cleared daily at the Federal Reserve?

magpie's picture

Then again one wonders how Somalian pirates and the Iranian banks manage their dollar reserves.

North Korea on the other hand has managed to frontrun the QEezing all along.

AUD's picture

They are cleared every day at the Fed.

Ultimately, every eurodollar deposit in a bank somewhere in the world is a liability with a bank that has a settlement account at the Fed, which are themselves the liability of the Fed.

The Fed is the ultimate arbiter of all $USD denominated liabilties. The only exception is physical USD notes, which can be traded hand to hand. That is not how international financial transactions work however.

johngaltfla's picture

Just doing the job the Congress wouldn't do. Or would it have?

Cdad's picture

You know Tyler, I'm sorry, but I am just going to have to flat NOT believe you on this count.  I'm sorry if this somehow besmirches your fine character, but the thought of Ben Bernanke bailing out K-Daffi Bank is simply too much for me to take in to my slowly martini-simmering noodle.

So...there was no Al-Q-K-Daffi bailout.  There.  Like a criminal syndicate Wall Street banker, I have said it and therefore made this discomfort go away.

Done.  Next.


Rainman's picture

....martinis. yum. Just remember martinis are like women's breasts. One not enough, three too many, two big ones just right. you probably already know that. 

Cdad's picture

Here here Rainman,

Two giant martinis = fun.  Three...not so much.  Four...divorce court.

knukles's picture

And getting your naked photo posted on line with the three titted tranny....
Senior position at the SEC