Fed Data Shows Foreign Banks Huge Beneficiaries of Emergency Lending Programs, Hedge Funds, McDonald’s, Harley-Davidson and Others Also Bailed Out

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Thu, 12/02/2010 - 00:51 | 770938 SmittyinLA
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Where's the Calpers link, and why did they need or want to borrow 5.4B?

Wed, 12/01/2010 - 23:54 | 770776 Not Sure
Not Sure's picture

I'm betting this will not be as big as the new Black Swan film.

Wed, 12/01/2010 - 23:41 | 770744 sgorem
sgorem's picture


Wed, 12/01/2010 - 23:40 | 770743 sgorem
sgorem's picture

George Washington, " PAPER MONEY RUINS COMMERCE, OPPRESSES THE HONEST, AND OPENS THE DOORS TO EVERY SPECIES OF FRAUD AND INJUSTICE".  unquote............................                                   

Wed, 12/01/2010 - 23:00 | 770635 onlooker
onlooker's picture

Everybody is loaned money but the US worker. The unemployed only want a paycheck for working their rear end off for 8 or 10 hours a day. They want to EARN honest wages. By having a JOB. They need jobs. America needs jobs. They WANT to work, not steal like the financial institutions.




The only question left is stoning, hanging or burned at the stake. Maybe drawn and quartered. Shall we preserve the Democracy and have a vote?

Wed, 12/01/2010 - 22:59 | 770628 Not Sure
Not Sure's picture

Keep your eye on the ball. Where is it? What is the ball and who has it?


On another note, I wonder what 12/7 will be like now?


Wed, 12/01/2010 - 23:05 | 770650 Not Sure
Not Sure's picture

"Note" That's a good one. I crack myself up.

Wed, 12/01/2010 - 22:37 | 770556 Buck Johnson
Buck Johnson's picture

This is outragous, they made sure to have this come out after the elections didn't they. 

Wed, 12/01/2010 - 22:00 | 770465 cdskiller
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Well, I am shocked. Shocked! Jackie Calmes of the Times was outraged when I accused her of lying for saying that the banks had payed back, with interest, all the financial aid they had recieved from the federal government.

Wed, 12/01/2010 - 21:50 | 770452 Violetta (not verified)
Violetta's picture

I still don't really understand QE. I;ve been reading the posts here for a few weeks, trying to understand what the government is doing.  It's very confusing, even with the xtranormal video! Anyone with basic common sense can see that inventing money is not going to do anything about basic problems, but I would like to try to understand the rationale.  Is the idea that the Fed credits itself with money, then lends that to banks, and then the banks...what then?  What is the point?  Everyone here says the idea is to make the stock markets go up.  But how does that happen?  Why does printing money enable the stock market to go up? 

Wed, 12/01/2010 - 22:07 | 770476 minus dog
minus dog's picture

They're "printing" money to lend to the government, primarily.  That trillion dollar deficit has to come from somehere, even if it's on paper and they're pulling the money out of their ass.  Which they are, of course.

At the most basic level, it drives the markets up the same way it makes everything else go up.  Look at a chart of the S&P or Dow, but priced in gold or silver instead of dollars.  The powers that be know that most people simply look at the market indicies going "up" and equate that with good news.

Other posters will no doubt have many other mechanisms by which they can fuck with the market.

Furthermore, at another basic level, printing boatloads of money can help people who have a mountain of debt.  Who has a mountain of debt?  The government, of course.  Short story - exhibit A: Zimbabwe.

There are plenty of other "benefits" from the standpoint of the government, too.

You ask "What is the point", but really this one of the big reasons they chose a fiat currency in the first place - so they can print like mad. 

Wed, 12/01/2010 - 23:29 | 770722 Violetta (not verified)
Violetta's picture

Thanks.  So that's why the Fed is buying the Treasury bills?  So the government runs a tab, and the Fed invents the money, and gives the government the invented money.  I don't understand why more people aren't upset by this.  Isn't this obviously a bad idea?  I mean, not dealing with reality is always a bad idea.  How can the government say with straight face that it is going to reduce the deficit while at the same time printing money to pay for its expenses?  Why even have a deficit commission?  I mean, that's ridiculous.  Cut off this and that from the budget, and then the next week, one of these POMOS you are all talking about?  That's what a POMO is?  The Fed invents money and lends it to the government?  Hello, Marx brothers.

Wed, 12/01/2010 - 21:50 | 770451 Everybodys All ...
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These Fed governors better have an exit plan out of the US when this all blows up. I for one have no pity for these fools.

Wed, 12/01/2010 - 22:53 | 770607 gasmiinder
gasmiinder's picture

They don't need your pity.  They own your ass.


Understand that the Fed is owned by the banks (literally).  The Fed has absolute power over our financial system and we are not allowed to even know what they are doing.  Whenever the idea of looking to see what they are doing is advanced your purported representatives run for the nearest hole to hide. 


It's over dude - the bankers are the masters and we are the slaves.  Only a fool believes he is free in the US today, that there is any reason to expect retribution to occur, or that the masters need to fear the slaves.

Wed, 12/01/2010 - 21:31 | 770424 MyKillK
MyKillK's picture

No mention that almost a Trillion in MBS were bought from European banks? $600 Billion alone from deutsche Bank and Credit Suisse alone.

Wed, 12/01/2010 - 23:27 | 770709 williambanzai7
williambanzai7's picture

Deutsche Bank?


I thought Germans had nothing to do with creating the crisis....

Wed, 12/01/2010 - 21:11 | 770386 Gloomy
Gloomy's picture

Maybe someone at the Fed does get it?

December 1, 2010 Too Big to Succeed




Kansas City, Mo.

THE world has experienced a severe financial crisis and economic recession. The Treasury and the Federal Reserve took actions that saved businesses and jobs and may very well have saved the economy itself from ruin. Still, the public seems ungrateful, expressing anger at these institutions that saved the day. Why?

Americans are angry in part because they sense that the government was as much a cause of the crisis as its cure. They realize that more must be done to address a threat that remains increasingly a part of our economy: financial institutions that are “too big to fail.”

During the 1990s, Congress, with encouragement from academics and regulators, repealed the Glass-Steagall Act, the Depression-era law that had barred commercial banks from undertaking the riskier activities of investment banks. Following this action, the regulatory authority significantly reduced capital requirements for the largest investment banks.

Less than a decade after these changes, the investment firm Bear Stearns failed. Bear was the smallest of the “big five” American investment banks. Yet to avoid the damage its failure might cause, billions of dollars in public assistance was provided to support its acquisition by JPMorgan Chase. Soon other large financial institutions were found to also be at risk. These firms were required to accept billions of dollars in capital from the Treasury and were provided hundreds of billions in loans from the Federal Reserve.

In spite of the public assistance required to sustain the industry, little has changed on Wall Street. Two years later, the largest firms are again operating with bonus and compensation schemes that reflect success, not the reality of recent failures. Contrast this with the hundreds of smaller banks and businesses that failed and the millions of people who lost their jobs during the Wall Street-fueled recession.

There is an old saying: lend a business $1,000 and you own it; lend it $1 million and it owns you. This latest crisis confirms that the economic influence of the largest financial institutions is so great that their chief executives cannot manage them, nor can their regulators provide adequate oversight.

Last summer, Congress passed a law to reform our financial system. It offers the promise that in the future there will be no taxpayer-financed bailouts of investors or creditors. However, after this round of bailouts, the five largest financial institutions are 20 percent larger than they were before the crisis. They control $8.6 trillion in financial assets — the equivalent of nearly 60 percent of gross domestic product. Like it or not, these firms remain too big to fail.

How is it possible that post-crisis legislation leaves large financial institutions still in control of our country’s economic destiny? One answer is that they have even greater political influence than they had before the crisis. During the past decade, the four largest financial firms spent tens of millions of dollars on lobbying. A member of Congress from the Midwest reluctantly confirmed for me that any candidate who runs for national office must go to New York City, home of the big banks, to raise money.

What can be done to remedy the situation? After the Great Depression and the passage of Glass-Steagall, the largest banks had to spin off certain risky activities, and this created smaller, safer banks. Taking similar actions today to reduce the scope and size of banks, combined with legislatively mandated debt-to-equity requirements, would restore the integrity of the financial system and enhance equity of access to credit for consumers and businesses. Studies show that most operational efficiencies are captured when financial firms are substantially smaller than the largest ones are today.

These firms reached their present size through the subsidies they received because they were too big to fail. Therefore, diminishing their size and scope, thereby reducing or removing this subsidy and the competitive advantage it provides, would restore competitive balance to our economic system.

To do this will require real political will. Those who control the largest banks will argue that such action would undermine financial firms’ ability to compete globally.

I am not persuaded by this argument. History suggests that financial strength follows economic strength. A competitive, accountable and successful domestic economic system, supported by many innovative financial firms, would restore the United States’ economic strength.

More financial firms — with none too big to fail — would mean less concentrated financial power, less concentrated risk and better access and service for American businesses and the public. Even if they were substantially smaller, the largest firms could continue to meet any global financial demand either directly or through syndication.

Crises will always be a part of our capitalist system. But an absence of accountability and blatant inequities in treatment are why Americans remain angry. Without accountability, we cannot hope to build a national consensus around the sacrifices needed to eliminate our fiscal deficits and rebuild our economy.


Thomas M. Hoenig is the president of the Federal Reserve Bank of Kansas City.


Wed, 12/01/2010 - 23:26 | 770704 williambanzai7
williambanzai7's picture

Well written, it is sitting in Benrons parrot cage ;-)

Wed, 12/01/2010 - 20:18 | 770259 Happy Days
Happy Days's picture

IMHO...this is just FEDSpeak....believe it at your own risk. Can one really trust a central bank considering their history? It's a joke....

Wed, 12/01/2010 - 20:17 | 770255 MGA_1
MGA_1's picture

Darnit, why couldn't I have been close to destabilizing the financial system !!

Wed, 12/01/2010 - 20:04 | 770222 Racer
Racer's picture

I have been a very law abiding citizen all my life, always did what I thought was the right thing to do, now...

I see it was the WRONG thing to do, and that makes me very angry. I do not want to obey any laws, why should I! They don't, I don't care any more if I will be put in prison when I am a pensioner, I will be given free food and free heating and have people check on me regularly. So when I am old enough, please mummy and daddy can I have a prison cell please for xmas because I have no money left because the bankstas robbed me?

Thu, 12/02/2010 - 00:41 | 770911 ebworthen
ebworthen's picture

I feel the same way.

minus dog - What is that 11th commandment? 

Thu, 12/02/2010 - 01:08 | 770964 Hook Line and S...
Hook Line and Sphincter's picture

Thou shall not make love to Ben Bernanke.

Wed, 12/01/2010 - 20:10 | 770238 minus dog
minus dog's picture

Seems like a lot of people forgot about the 11th commandment.  It's going to make a big comeback with the middle class, and the former middle class.

Wed, 12/01/2010 - 19:40 | 770178 Milestones
Milestones's picture

This kind of shit should not be allowed to be swept under the rug. KINA, good post and right on the button. WE are still the sovereigns and owners of this country and it is way past due that the owners of this country start acting like owners and not some low life serfs.

F%#& these overblown two bit street punks. Christmas gifts should include some stout rope. We need to se some dancin feet.    Milestones 

Wed, 12/01/2010 - 19:31 | 770151 Seasmoke
Seasmoke's picture

and just think of all the the worthless HELOC loans that BOA and WF has on the books at full value........mark to fantasy !!!

Wed, 12/01/2010 - 20:21 | 770272 LiquidBrick
LiquidBrick's picture

Yep. Northfork lend $200,000 HELOC to someone I know very well in 2007. Then GreenPoint bought out NorthFork. Then CapitalOne bought out GreenPoint. Then BAC bought the HELOC paper which is now worth $0.

Wed, 12/01/2010 - 19:28 | 770143 steve2241
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This report states that 9 TRILLION dollars in overnight loans were made to a handful of U.S. financial institutions. 2,2 trillion to Merrill Lynch alone! http://www.wibw.com/nationalnews/headlines/Fed_made_9_trillion_in_emerge... This information came through on the bottom of the screen on CNN a few moments ago. I had to Google "Fed 9 trillion". I thought it was in regards to the last 24 hours and they had given the ECB a blank check to bailout everyone - core and periphery!

Wed, 12/01/2010 - 19:13 | 770101 docsdoc
docsdoc's picture

Time for Ron Paul to begin congressional hearings.  Demand the truth - Audit the Fed!  END THE FED!

Wed, 12/01/2010 - 21:14 | 770393 Hey Assholes
Hey Assholes's picture


Wed, 12/01/2010 - 19:09 | 770089 Kina
Kina's picture

If I employ a manager to run all my affairs for me nobody would accept that this manager could deny me full and immediate access to all things relating to my affairs that he is doing.


Electing governments and Presidents is the same. You elect them to manager the affairs of YOUR country for you. However you have fight tooth and nail to get the slightest bit of truthful information from them concerning the affairs you elected them to manage.


Do people have much respect for Congress and the office of President or is it just a sick joke, and we all know and take it for granted they are their to scam their powers to syphon off the public into the hands of the corporate elite?

Wed, 12/01/2010 - 19:03 | 770061 Kina
Kina's picture

Hallellujah,.... if there was ever any question of whether the Federal Reserve Bank has ever violated its fiduciary duty to the United States of America (and it has) is put to rest and Congress is legally, ethically, morally, and Constitutionally required to revoke the charter of the Federal Reserve Bank and reverse the Federal Reserve Act of 1913.  


There will be no impetus for Congress to do anything until they have pitchforks and nooses at their door. Only then they will turn on their masters.


Wed, 12/01/2010 - 18:32 | 769943 Duuude
Duuude's picture


Wed, 12/01/2010 - 18:51 | 770025 NotApplicable
NotApplicable's picture

But they earned it!

That they did it by fees from processing each other's bail-out paper is immaterial. </sarc>

Wed, 12/01/2010 - 18:26 | 769916 spongeBOB
spongeBOB's picture

And BAC was up>3% on the news. C'mon wiki, release the fawkin docs. I hope whatever gets released implicates the Fed or Timmy. Please Santa I want nothing more this xmas but to see one of those MoFo take it up the a$$.

Wed, 12/01/2010 - 17:56 | 769816 Buttcathead
Buttcathead's picture

So when does AAPL hit $400  ?

Wed, 12/01/2010 - 17:55 | 769810 Buttcathead
Buttcathead's picture

Hooray !!!  for free market capitalism !!!

Wed, 12/01/2010 - 17:50 | 769791 moneymutt
moneymutt's picture

A lot of folks were whining that this partial audit was a sell-out compared to what was proposed or a complete shut down of the FED...but this information is extremely useful, and it will lead Congress and people to ask for more....I think they did right thing, right compromise to get Audit FED bill passed. We shouldn't have to hope for a brave whistle blower to hand this information over to a guy being charged with rape that has a web-stie that is shut down...its our govt, we should get this information because we freaking want it, and of course, the insiders had good (for them) reasons to keep this info hidden.

Getting this info is a win for democracy and it took bi-partisan populists in Congress to get it.

Wed, 12/01/2010 - 18:07 | 769850 Traianus Augustus
Traianus Augustus's picture

It should be good for guillotine makers too!!!

Wed, 12/01/2010 - 17:47 | 769784 f16hoser
f16hoser's picture

This government will do anything to keep the lie alive. Junk backed by Junk = Junk! This really is the Twilight Zone!

Wed, 12/01/2010 - 17:23 | 769676 New Revolution
New Revolution's picture

Hallellujah,.... if there was ever any question of whether the Federal Reserve Bank has ever violated its fiduciary duty to the United States of America (and it has) is put to rest and Congress is legally, ethically, morally, and Constitutionally required to revoke the charter of the Federal Reserve Bank and reverse the Federal Reserve Act of 1913.    A complete audit of the books is now in order and if anything is out of place criminal and civil proceedings must begin against any and all persons who benefited from their actions and interests.

God I'm glad that's out of the way.    This should give the networks something to report about for at least a year.   The second year will be the criminal parade of politicians who investigations aided and abetted the central banks thefts.

Welcome to the New American Revolution.    I just hope we lead it instead of the Irish.

Wed, 12/01/2010 - 19:48 | 770205 Cdad
Cdad's picture

It would be nice to get a ZH lawyer to weigh in on this subject.  I share with you a passion for the take down on this criminal element within our nation.  It needs to be stopped.

But if you are waiting for the press to break this story....well, I'm not going to hold my breath on that one.  Even if you were to shift it over to Fox, where they at least believe in a vetting of sides, I'm not sure anyone there has the moxy to take on the Fed.  Wish it were true, however.

Wed, 12/01/2010 - 18:54 | 770031 eatthebanksters
eatthebanksters's picture

Nothing will change!

Wed, 12/01/2010 - 18:30 | 769930 Jean Valjean
Jean Valjean's picture

It's nice to dream.

Media take on this will be:  Look how perfectly this world saving action, which benefitted all people, was executed by the master minds.

Wed, 12/01/2010 - 18:49 | 770013 NotApplicable
NotApplicable's picture

Not to mention that the Fed has no fiduciary duty to anyone but themselves. All they have is a fuzzy "dual-mandate." Even if it did, Bennie has full immunity by being on the board of the BIS. There is not a single entitity in the world with any legal standing that can bring charges against him.

Thu, 12/02/2010 - 00:01 | 770798 dizzyfingers
dizzyfingers's picture

Are the reserve banks not monopolies, those entites that are anathema in the US? Remember AT&T?

Wed, 12/01/2010 - 21:12 | 770390 Hey Assholes
Hey Assholes's picture

Its time to shoot the bastards. Then we shall have justice.

Thu, 12/02/2010 - 00:37 | 770901 ebworthen
ebworthen's picture

Shooting is too quick and merciful.

Wed, 12/01/2010 - 22:28 | 770532 Clapham Junction
Clapham Junction's picture

I don't know about that, but I like your name.

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