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Meet The 35 Foreign Banks That Got Bailed Out By The Fed (And This Is Just The CPFF Banks)

Tyler Durden's picture




 

One may be forgiven to believe that via its FX liquidity swap lines the Fed only bailed out foreign Central Banks, which in turn took the money and funded their own banks. It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP. Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks. And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Brian Sack-led team of traders will allow stocks to drop ever... Until such time nature reasserts itself, the market collapses without GETCO or the PPT being able to catch it, and the Fed is finally wiped out in one way or another.

The 35 companies in question:

UBS
Dexia SA
BNP Paribas
Barclays PLC
Royal Bank of Scotland Group
Commerzbank AG
Danske Bank A/S
ING Groep NV
WestLB
Handelsbanken
Deutsche Post AG
Erste Group Bank AG
NordLB
Free State of Bavaria
KBC
HSH Nordbank AG
Unicredit
HSBC Holdings PLC
DZ Bank AG
Republic of Korea
Rabobank
Sumitomo Mitsui Banking Corporation
Banco Espirito Santo SA
Bank of Nova Scotia
Mizuho Corporate Bank, Ltd.
Syngenta AG
Mitsui & Co Ltd
Bank of Montreal
Caixa Geral de Depósitos
Mitsubishi UFJ Financial Group
Shinhan Financial Group Co Ltd
Mitsubishi Corp
Aegon NV
Royal Bank of Canada
Sumitomo Corp

 

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Wed, 12/01/2010 - 18:13 | 769862 bob_dabolina
bob_dabolina's picture

Thank god Banco Espirito Santo SA got bailed out [wipe my brow of a pearl of sweat]

That one has systemic written all over it.

Wed, 12/01/2010 - 18:16 | 769879 nope-1004
nope-1004's picture

Do any of them not?  The entire ship is going to sink one day.

 

Wed, 12/01/2010 - 18:18 | 769890 bob_dabolina
bob_dabolina's picture

Free State of Bavaria

That one was serious. We would have been seriously fucked had they not bailed that one out.

Wed, 12/01/2010 - 18:34 | 769953 Waterfallsparkles
Waterfallsparkles's picture

Yet, they let Lehman, Bear Stearns, Washington Mutual, Countrywide go down the tubes.

Wed, 12/01/2010 - 18:25 | 769912 tmosley
tmosley's picture

I think he's being sarcastic.

Sometimes hard to tell these days.

Wed, 12/01/2010 - 18:28 | 769925 bob_dabolina
bob_dabolina's picture

With this data dump I'm dropping sarcasm bombs all day.

Wed, 12/01/2010 - 18:32 | 769946 MarketTruth
MarketTruth's picture

WAIT! Is this the same as the central bank liquidity swaps Bernanke refused to answer to congress in this video?

www.youtube.com/watch?v=n0NYBTkE1yQ

Or is this bail out scam an additional scam on top of the $500,000,000,000?

Wed, 12/01/2010 - 18:45 | 769996 Sean7k
Sean7k's picture

Hey, it's only money.

Wed, 12/01/2010 - 19:42 | 770184 VegasBD
VegasBD's picture

*currency

Wed, 12/01/2010 - 21:01 | 770364 MarketTruth
MarketTruth's picture

FIAT currency to be precise.

Perhaps it is time these other banks get smart and demand loans be made in physical gold yet paid back in dollars.

Wed, 12/01/2010 - 20:02 | 770229 crazyjsmith
crazyjsmith's picture

Yeah, I believe this is the very list he was refusing to disclose, when he blatantly said, "No"

It is becoming evident to why he was not wanting this info to be released.  The curious aspect will be to see how our media will pick up this story.  I am guessing the digging that TD has done in the first few moments this was disclosed will far surpass anything our little media pigs will do over the coming days and weeks.  We won't even hear about this in one weeks time.  It is not disturbing, it's frightening.  All on a day where we see the market go up over 200 points!! 

Wed, 12/01/2010 - 21:45 | 770438 Bob Sponge
Bob Sponge's picture

+1,000,000,000

I wonder if they pumped the market like crazy today to distract people from the release of this data.

Wed, 12/01/2010 - 22:44 | 770585 Founders Keeper
Founders Keeper's picture

[I am guessing the digging that TD has done in the first few moments this was disclosed will far surpass anything our little media pigs will do...]---crazyjsmith

I agree on both accounts, crazyjsmith.  TD does an awesome job.  MSM, predictably miserable.

However, the MSM goes back to work this January.

As soon as the new Tea Party congressmen are sworn in, and the Repubs take over the House, the MSM's 2-year vacation will be over.  It's back to work.  The socialist left-wing MSM reporters and journalists will descend on D.C. like never before.  Swarming the Halls of congress anxious to discredit Republicans and defend their dear leader, Obama. 

News, investigative reports, exposes, feature articles, and breaking news headlines will come flooding into newspapers, magazines, websites, and onto network and cable news anchors' desks. 

Here's the secondary effect in this rush.  And, the more important.  These MSM reporters have been on vacation.  I suspect none of them have been researching what's been really going on in the economy these past 2 years.  (Why should they?  Their guy won the election.  All was right with the world.)  So, they go back to work reporting any and all activity of the new Republican House.  I expect, in their rush to discredit the new Repub leadership, the MSM will inadvertantly uncover news stories that will expose Wall Street, the Fed, and damage the White House.  Unwittingly, of course, because the reporters have no idea the interconnectedness of the corruption---they haven't been paying attention to current affairs. 

(I do not write this in defense of the Republican party.  Both Dems and Repubs are shameful representatives of their electorate.)

Wed, 12/01/2010 - 18:39 | 769969 eatthebanksters
eatthebanksters's picture

More like the entire fleet will disappear...

Wed, 12/01/2010 - 20:15 | 770249 Rainman
Rainman's picture

UBS is the biggest hog in the pen. Isn't UBS where the great patriot former US Senator Phil Gramm hangs his hat 8 to 5 ??? 

Wed, 12/01/2010 - 20:46 | 770326 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture
 


   

     
  The Bank of Korea International Conference 2006 Held In Seoul SEOUL, SOUTH KOREA - JUNE 16: Brian Sack, Vice President of the Macroeconomic Advisers, LLC speaks during The Bank of Korea International Conference 2006; Monetary Policy in an Environment of Low Inflation at the Westin Chosun Hotel on June 16, 2006 in Seoul, South Korea. Some 200 Central bank officials, business leaders and Professors from 31 countries attend the two-day international forum for discussion and exchange a diversity of opinions about economic issues. - well the pic didn't paste, but this guy saw what bernanke saw...a great moderate halucination - we are ruled by idiots.

Wed, 12/01/2010 - 18:13 | 769865 nope-1004
nope-1004's picture

So much for a "sound Canadian banking system".

Wed, 12/01/2010 - 18:15 | 769874 King_of_simpletons
King_of_simpletons's picture

Yeah, I was thinking the same. The Canadian public were conned into thinking that their Banks escaped the financial crisis unscathed when in fact it is the USFED that bailed their asses out.

Wed, 12/01/2010 - 18:23 | 769907 Bay of Pigs
Bay of Pigs's picture

I informed the tellers at TD who didn't even know about their own banks exposure to the US RE market. Canadian banks are also heavily exposed to the RE bubble in Canada. It is a fuckan charade up north. Just starting to roll over.

Wed, 12/01/2010 - 18:43 | 769971 King_of_simpletons
King_of_simpletons's picture

Re: Canadian Banks - http://online.wsj.com/article/BT-CO-20101201-715296.html

or just google the headline: "Canadian Banks Borrowed US Federal Reserve Crisis Money"

Wed, 12/01/2010 - 18:20 | 769893 dojiman
dojiman's picture

Some of the banks are already playing it down.

 

http://www.theglobeandmail.com/report-on-business/economy/canadian-banks...

 

Wed, 12/01/2010 - 18:15 | 769872 LongSoupLine
LongSoupLine's picture

gee, shocking...the top bank is a...wait for it..."primary dealer".

Wed, 12/01/2010 - 18:18 | 769888 faustian bargain
faustian bargain's picture

so is BNP and Barclays, and several others:

 

BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
UBS Securities LLC.

Wed, 12/01/2010 - 18:16 | 769881 RobotTrader
RobotTrader's picture

Today's technical take on the market action:

 

 

Top volume movers on Investors.com:

Wed, 12/01/2010 - 18:28 | 769926 Duuude
Duuude's picture

 

 

FROM THE FED'S LARGESSE CAME ALL OF THE BONUSES

 

Wed, 12/01/2010 - 19:18 | 770115 cosmictrainwreck
cosmictrainwreck's picture

I mean, like, reeeallly..........WHO GIVES A SHIT?

Wed, 12/01/2010 - 18:16 | 769882 bugs_
bugs_'s picture

How demoralizing

Wed, 12/01/2010 - 18:22 | 769886 hambone
hambone's picture

I'm not feeling well - the more I know the more unwell I feel.

Guess the point is if all we do is after the fact figure out how we were raped but no one cares...are we not better off not knowing?  Seriously, my mental health is taking a pounding.  My ability to function normally in Amerika is in question.

Thoughts?  Is this knowledge helping or hurting folks?

Wed, 12/01/2010 - 18:26 | 769919 Fritz
Fritz's picture

Yes - get on with the business of living life and stop dwelling on negativity.

 

Wed, 12/01/2010 - 18:33 | 769948 jus_lite_reading
jus_lite_reading's picture

When the black friday'ers realize they're not getting next weeks' unemployment checks, you'll feel better...

Wed, 12/01/2010 - 18:42 | 769985 eatthebanksters
eatthebanksters's picture

What did that congressman get caught on tape saying?  I think his word were,"It's all rigged!"

Wed, 12/01/2010 - 19:05 | 770050 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

I've taken such an awful financial beating the past 5 years, I now care much less about money/security and feel better today, though years 1 and 2 were tough...

The 4 banks I've worked for during this period haven't fared well - one bit it big-time and now in the hands of foreign gubmint, one acquired for a pittance following a huge bank treasury department miscue, one has yet to repay a penny of the TARP money it took, stock is $4 and bank still loses $1MM per day, and the other is a solidly run Canadian bank....

Wed, 12/01/2010 - 19:27 | 770140 illyia
illyia's picture

hambone - it hurts because its terrible. When it hurts enough people try to change things. We've travelled so far down the road of corruption because we wish to avoid the pain.

It is not remarkable that even very "educated" and "aware" people remain in denial. It is so much easier... But denial doesn't work, it just lets the slavers build bigger plantations and buy more slaves.

What will work is transparency. And, we are going to have to make that happen. The banksters won't. The corpgov won't. Only when We the People decide to make it change will it change.

And, we will only decide that when it hurts enough. So... you are an early adopter...

Wed, 12/01/2010 - 21:55 | 770457 Bob Sponge
Bob Sponge's picture

Well said. You need to know the truth about a problem before you can fix it.

Wed, 12/01/2010 - 18:18 | 769887 Xibalba
Xibalba's picture

Quite a few German banks on that list. 

Wed, 12/01/2010 - 18:23 | 769901 Spalding_Smailes
Spalding_Smailes's picture

Just wait those swap lines will be dryhump'd again ...

Wed, 12/01/2010 - 18:43 | 769987 M.B. Drapier
M.B. Drapier's picture

Heehee, yes.

Wed, 12/01/2010 - 18:22 | 769898 etrader
etrader's picture

There's rumours been floating around that Landesbank has got problems with dollar funding.

CNBC Euroland at least allows such thing to be mentioned ....

2min 16sec in Christoph Eibl, ( Tiberius Group)

http://www.cnbc.com/id/15840232?video=1676185702&play=1

 

Wed, 12/01/2010 - 18:37 | 769910 Spalding_Smailes
Spalding_Smailes's picture

Great info- thanks.

 

 

A dollar shoooortage ?

I thought the dollar was dead  ? Unwanted, trash ? Hmmmmm ...

 

ECB : Ben we need dollars ...

Ben : Ok give me this,that,this,that and pay 10% in Gold.

ECB : .... ok.

Ben : Thanks, I'll wire it after glee is over.

Wed, 12/01/2010 - 20:12 | 770247 trav7777
trav7777's picture

perhaps this is why the Fed didn't transfer Germany's gold back to them.  Collateral.

The dollar sits underneath 75% of world debt.  You need dollars to make your payments?  You borrow them from the Fed

Wed, 12/01/2010 - 22:30 | 770542 Spitzer
Spitzer's picture

There is one thing in common with every single hyperinflated currency in history which is, a shortage of the said currency.

Wed, 12/01/2010 - 18:23 | 769902 Cojones
Cojones's picture

3 dutch banks, including ING and Aegon which were nationalised at the time.

Wed, 12/01/2010 - 18:23 | 769905 Mongo
Mongo's picture

within next months.. as everybody discovers that iPad is nothing less of an hardened toiletpaper tissue the collapse will commence and it will be brutal.

 

Until then.. I shal buy some more gold

Wed, 12/01/2010 - 18:29 | 769928 Waterfallsparkles
Waterfallsparkles's picture

THAT IS AN OUTRAGE.  Now they want to cut our Social Security and Medicare and raise OUR Taxes to pay for it.

Wed, 12/01/2010 - 18:34 | 769952 jus_lite_reading
jus_lite_reading's picture

and nobody says PEEP about it... bend over and lube up. maybe it's better not to know the truth??

Thu, 12/02/2010 - 02:35 | 771097 Arkadaba
Arkadaba's picture

Can you say Ire...land. It is getting too unreal.

Wed, 12/01/2010 - 18:29 | 769929 DocLogo
DocLogo's picture

running a cartel is god's work

Wed, 12/01/2010 - 18:30 | 769933 iota
iota's picture

Wow, lucky RBS; bailed out by two different nations.

http://news.bbc.co.uk/1/hi/business/7666570.stm

Wed, 12/01/2010 - 18:32 | 769944 doomandbloom
doomandbloom's picture

Hello, nice to meet you...

Wed, 12/01/2010 - 18:35 | 769954 Bartanist
Bartanist's picture

So the apparent plan is an orderly transition of all common equity ownership to the Federal Reserve Bank, then a crash and then selling the assets back to the public at the lower price.

The Fed would be the only entity to take the hit, which does not really matter since the Fed created the money to buy the stocks at the higher levels out of thin air anyway.

What comes from thin air can return to thin air.

Wed, 12/01/2010 - 19:08 | 770080 MachoMan
MachoMan's picture

The general public has no wherewithal to pay for the assets...  (we're not the planned beneficiary buddy).

Wed, 12/01/2010 - 19:57 | 769956 M.B. Drapier
M.B. Drapier's picture

Hey, why no Allied Irish Bank on that list of foreign CPFF recipients? You're just testing us, right? :)

Wed, 12/01/2010 - 20:29 | 770290 THE DORK OF CORK
THE DORK OF CORK's picture

You beat me too it M.B. - Gentle Ben must not like us poor Micks........

No Irish need apply

Wed, 12/01/2010 - 21:12 | 770360 M.B. Drapier
M.B. Drapier's picture

/Au contraire/, my fellow participant in the European enterprise. Check the data! (All this and TAF too.)

Wed, 12/01/2010 - 21:42 | 770430 THE DORK OF CORK
THE DORK OF CORK's picture

Oh Ben, and to think I doubted your Irish eyes , ma chroi ma chroi...... where the fuck is the fada on these keyboards ?

Check these guys out - they are so bad yet somehow strangely good

www.youtube.com/watch?v=Vq69RXpun5Q

 

Thu, 12/02/2010 - 03:18 | 771160 Arkadaba
Arkadaba's picture

Nice!

http://www.youtube.com/watch?v=yStaY9BuF3s

and for some reason recognized "ma chroi" - from my grandmother who came from here:

http://www.youtube.com/watch?v=yPZoCbpI_yA

Wed, 12/01/2010 - 18:35 | 769959 gwar5
gwar5's picture

Our dear Fed is the mothership which owns the rest of the world. 

The Ben Bernanke's parents must be so proud.... he did it!

 

Wed, 12/01/2010 - 18:35 | 769960 fuu
fuu's picture

I got $10,057,401,900,000 with an average Tenor of 22.68 days and an aggregate rate of 1.54% from the Central Bank Liquidity Swap file. 569 transactions between 12/17/07 and 7/13/10.

Wed, 12/01/2010 - 18:36 | 769962 unky
unky's picture

Thanks for the bailout america ;- )

Wed, 12/01/2010 - 19:40 | 770179 RockyRacoon
RockyRacoon's picture

Here's a good one about "bailouts". 

From Doug Casey's latest newsletter --worth a watch.

An Excellent Video

Follow the link here  for a terrific little video called “Lemonaid” that was submitted as part of an “Atlas Shrugged Video Contest.” It’s of a very high production quality, so you may think that the beginning is a commercial – but it’s not, it’s the video entry. This is definitely something you are going to want to share.

Wed, 12/01/2010 - 18:43 | 769983 Bartanist
Bartanist's picture

It does clarify the fact that then entire world is a monetized Ponzi scheme. Each of the central banks creates money out of thin air, embezzles a portion amounts for their pet slaves, and then loans the bulk to foreign banks in some form of massive circle jerk ritual.... each loaning to the others. And, so they are each capitalized by mutual agreement.

I guess it would not work out well for a country or bank that does not want to circle jerk with the rest of the club. They would be shunned and the people of their country would suffer impoverished spurning (with no access to foreign money stuffign credit) ... unless they had the resources and leadership to create a self-sufficient economy (kind of like North Dakota).

I would never have guessed that the ECB was into us for $8 trillion in welfare checks, in addition to the nearly $1 trillion its banks took as charity.

Wed, 12/01/2010 - 19:35 | 770149 unum mountaineer
unum mountaineer's picture

musical chairs is all it is. in the end though, it collapses as one party pulls an eric cartman.

I guess it would not work out well for a country or bank that does not want to circle jerk with the rest of the club. They would be shunned and the people of their country would suffer impoverished spurning

that's the rub though isn't it? won't we be impoverished either way? default and feel the pain (little people only) or circle jerk and socialize those loses (little people need apply only)?

Wed, 12/01/2010 - 19:33 | 770155 illyia
illyia's picture

++

Wed, 12/01/2010 - 19:33 | 770156 honestann
honestann's picture

Not really.  A country that stays out of the fiat debt game follows a natural, sustained, slow-growth profile where people bootstrap themselves and their businesses organically (finance growth from profits).

The lack of easy, irresponsible, created-out-of-thin-air debt naturally leads people to be frugal, and carefully consider their investments (which they worked hard to save up).  However, the lack of endless hot debt-money keeps prices very, very low, which makes it much, much easier for regular, honest, prudent, rational, responsible, productive folks to advance personally and commercially.

In the end, the lack of fiat-fake-fraud-fiction-fantasy-fractional-reserve debt money leads to a success and justice for everyone, absent unfortunate accidents.

Here is one way to understand how infinitely corrupt the current central bankster system is.  With their ability to create and lend endless fiat debt money, they have a huge incentive to get everyone and everything into massive debt (the more debt, the more they "earn").  Taken to its logical extreme, which the world is now approaching, the world gets so overindebted that they cannot possibly pay their debts.  At that point, the gangster banksters can literally foreclose on the entire planet (except a small minority of "paid-off" assets).  However, they can easily steal those too, because they control governments.  They simply pay off the predator congresses and administrations to raise property taxes to obscene levels and create obscene regulations until even the few "owners" cannot survive without selling.

Think about that.  In this way, the ultimate predator class, who have never produced a single real, physical good in their entire lives, owns the entire planet, and enslaves everyone on it.  That should illustrate how totally evil is the current system, and why it must go.

Wed, 12/01/2010 - 19:41 | 770182 unum mountaineer
unum mountaineer's picture

A country that stays out of the fiat debt game follows a natural, sustained, slow-growth profile where people bootstrap themselves and their businesses organically (finance growth from profits).

Are you speaking of Iceland here? cuz there was pain there for sure. just curious as to what sovereign has actually been able and successful in doing this in this recent ass rapage?

Wed, 12/01/2010 - 20:15 | 770251 trav7777
trav7777's picture

you can't.  Gresham's Law is an evolutionary maxim.  Any nation that tries sustainability is destroyed in the growth game by nations that use the debt conjure steroids

Thu, 12/02/2010 - 17:04 | 772757 honestann
honestann's picture

And that's the trick, isn't it?  To be sure, it is difficult to avoid all or most of the artificial dislocations caused by fiat money and fractional-reserve-insanity elsewhere in the world.

However, it is still perfectly possible to refuse to go into debt, refuse to expand expenses, refuse to expand government.  Just because the rest of the world is going insane does not require you to go insane.

For example, a country that does refuse to go into debt, and focuses on native exports, may benefit approximately as much as they suffer.  For example, if a country has lots of copper (think Chile), the endless spew of fiat currency will act to support the price of copper, and increase their revenues.  Of course, I'm the first to admit this is also a negative, because it increases the price of copper for folks inside that country too, and it increases the price of other products they may import.  However, if they import less or the same value as they export, they are not hurt too much.

So your basic point is true --- that the pervasive fiat system hurts and dislocates everyone --- those who refuse to play the debt game, and keep their in/out balanced, do far, far, far, far better than anyone else.

PS:  What do you think would happen in the following situation.  Choose a country, say Chile or Argentina, then assume they froze their internal fiat money quantity (or switched to gold or silver coins)... AND... required all import and export transactions to be settled in gold.

I think that would remove much of the damage, but certainly not all, because price inflation takes a while to happen after monetary inflation (the creation of fiat-debt-money).  What do you think?

Thu, 12/02/2010 - 15:14 | 772726 honestann
honestann's picture

Are you kidding me?  You think Iceland didn't play the fiat-money game with massive fractional-reserve-banking games?  What flavor kool-aide are you drinking?

Wed, 12/01/2010 - 18:42 | 769984 Sean7k
Sean7k's picture

Well, have to say, they are bound and determined to make this thing work a little longer. Personally, I welcome the preparation time. So many things to procure and store. 2012 should work about perfect for me. 

Now, FED, can you do something about these PM prices- what the hell? How am I supposed to get rid of this paper trash AND get a good price on gold and silver? 

I mean, I only have a few more T's to cross and I's to dot and you can raise your taxes, you can attempt to confiscate, but I will be safely working on my farm where I can tell the utilities and monsanto and conagra and cargill and the water department and especially the US government to eat shit and die...

There is something very satisfying about that thought...

Wed, 12/01/2010 - 19:22 | 770125 honestann
honestann's picture

You bet there is!  Good going!  We should be ready well before the end of 2012 too.  We'll be out of the USSA in 4 months, which will make much of our efforts easier.  One year ago we traveled to several countries to scope out where we want to relocate.  Everywhere we checked is much better than the USSA... unless all that matters to you is "shortest distance to a shopping mall".

To be sure, even those of us who wisely prepare to be self-sufficient will suffer inconveniences and modest hardships when the world economy collapses.  But nothing like the billions of poor bastards who trust the [self-proclaimed] "authority" AKA the predators-that-be.

Keep up the good work.

Wed, 12/01/2010 - 20:21 | 770270 unky
unky's picture

Which place did you choose to live then, may I ask?

Wed, 12/01/2010 - 22:58 | 770626 I Am The Unknow...
I Am The Unknown Comic's picture

Well Done. I have also chosen my out of country location and I recommend everybody have at least one backup plan.  If and when civil unrest occurs, I am out of here.  There is no reason to have to be a part of that.  The smart and/or fortunate people got out of Germany in the early 1930's.  Think about it.   Even though the world was in a great depression at that time, some people had the good sense to get out of the relatively recovering German economy while they could, and that was counterintuitive to a lot of people.  How many told their departing neighbors "you're crazy to leave Germany.  Where are you going to go?  Hitler is going to rebuild this country.  You are going to miss out on the great German revival.  You're an idiot to throw this all away....etc."

The idea is to just get out.  One doesn't have to have a paradise to move to, and most likely will be moving to someplace that is also having financial problems....

To be sure, have your passport current and keep it within reach (not in a bank safety deposit box).  If you try to move out of the country, you will be amazed at how difficult it actually is.

Wed, 12/01/2010 - 18:44 | 769992 virgilcaine
virgilcaine's picture

A rogues gallery of sorts.. mug-shots should be attached to each.

Wed, 12/01/2010 - 18:45 | 769999 gwar5
gwar5's picture

Just occurred to me when I spotted something on the GATA site -- we hold most of those country's gold.  Sweet. Now they really hate us.

Wed, 12/01/2010 - 19:01 | 770030 Sean7k
Sean7k's picture

Hate is such an ugly word...we're just a big, furry death machine that bullies and poisons the entire world as we work incessantly at stealing everyone's resources for pennies on the dollar- what's not to love? At least we bail 'em all out with worthless currency!

Wed, 12/01/2010 - 19:17 | 770112 honestann
honestann's picture

Though some have been simply handed fiat money (literally bailed out), the usual pattern is to "bail out" by creating more fiat-fake-fraud-fiction-fantasy-fractional-reserve currency out of thin air to provide more loans, get them further in debt, and grow closer to the day when central banks can (and will) foreclose on the entire planet.

That is their plan, since 1913 in the USSA, and for hundreds of years in England.

Wed, 12/01/2010 - 18:47 | 770008 Milton Waddams
Milton Waddams's picture

Can someone clarify whether foreign banks, by virtue of their US operations, also stockholders of the Fed?

In other words are foreign banking interests partial owners of, as Senator Bernard Sanders put it, "one of the most powerful agencies in government"?

Wed, 12/01/2010 - 19:04 | 770032 Sean7k
Sean7k's picture

Yes they are, through shell corporations. JP Morgan has been a front for the Rothchild's since the 1800's. If you look, I'm sure you will pull up a lot more.

Wed, 12/01/2010 - 19:12 | 770097 Milton Waddams
Milton Waddams's picture

Really? How does that work?

I looked it up and google says, from best I can tell, foreign banks are not members of the Federal Reserve System, so no stock. They are subjected to domestic regulation and supervision.

Wed, 12/01/2010 - 19:49 | 770206 TheGreatPonzi
TheGreatPonzi's picture

They are not members officially, but you can bet a little phone call to Bernie in troubled times gets an answer.

Nations and borders are meaningless these days. The banking system is one giant world squid. One nation falls, every nation falls. The FED knows it, because the FED is the banking system, and the banking system is the FED.

Wed, 12/01/2010 - 20:44 | 770324 Sean7k
Sean7k's picture

I suggest you read "The Creature from Jekyll Island", I don't have it close by, but the details are there. Domestic regulation and supervision was written by the banks. 

There is a significant amount of material out on how bankers move money and products through various shell banking centers. Money laundering on a massive scale. Reference "economic hitmen". 

Good luck!

Wed, 12/01/2010 - 18:56 | 770037 swissinv
swissinv's picture

pls correct me if I wrong here but this artical doesn't make sense to me... The reason for liquidty swaps is simply to provide USD liquidity in foreign countries outside of the US and has nothing to do with bailing out banks

Wed, 12/01/2010 - 19:08 | 770084 Sean7k
Sean7k's picture

In a liquidity swap, the bank or country pledges for example euros as collateral against a loan of dollars. The dollars are transferred, but the euros stay in the bank or countries possession. If the entity cannot make good on the loan, it is forgiven as we have no way of attaching the collateral. 

Further, it is a bailout because in a real banking system, the bank would not have access to such low interest money without real collateral. They would go bankrupt.

Wed, 12/01/2010 - 19:21 | 770120 swissinv
swissinv's picture

thanks Sean but when I read the following definition (Wikipedia) I understand that the foreign country's currency is swapt (and thus the USD lending is backed with cash) - Market risk is eliminated by fixing the exchange rate similar to SLB/REPO transaction:

These swaps involve two transactions. When a foreign central bank draws on its swap line with the Federal Reserve, the foreign central bank sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate. The Federal Reserve holds the foreign currency in an account at the foreign central bank. The dollars that the Federal Reserve provides are deposited in an account that the foreign central bank maintains at the Federal Reserve Bank of New York. At the same time, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction that obligates the foreign central bank to buy back its currency on a specified future date at the same exchange rate. The second transaction unwinds the first. At the conclusion of the second transaction, the foreign central bank pays interest, at a market-based rate, to the Federal Reserve.

When the foreign central bank lends the dollars it obtained by drawing on its swap line to institutions in its jurisdiction, the dollars are transferred from the foreign central bank's account at the Federal Reserve to the account of the bank that the borrowing institution uses to clear its dollar transactions. The foreign central bank remains obligated to return the dollars to the Federal Reserve under the terms of the agreement, and the Federal Reserve is not a counterparty to the loan extended by the foreign central bank. The foreign central bank bears the credit risk associated with the loans it makes to institutions in its jurisdiction.

Wed, 12/01/2010 - 20:16 | 770252 Implicit simplicit
Implicit simplicit's picture

My understanding is that it is considered a bailout is because the the assets and/or euros never leave the foreign central bank, and thus may still be considered part of their reserves This allows them to leverage the USD and the assets marked for swap. It is not a normal bank transaction in that the multiplier effect of having both USD and Euros held in the same bank would not normally happen. The trade supposedly will be consumated in the future, but for now both set of assets are leveraged. The fact that it is done to add liquidity implies some form of bailout, otherwise an eevn trade does not incfrease liquidity.

Wed, 12/01/2010 - 20:38 | 770308 swissinv
swissinv's picture

ok another one confirming that there is no cashflow from the foreign central bank to the FED - thus Sean seems to be right then. Just funny that the involved credit risk is not explicitly mentioned in all the defnition I was reading. thanks guys!

Wed, 12/01/2010 - 19:10 | 770091 swissinv
swissinv's picture

my understanding is that desired effect is to avoid USD appreciation due to shortage on the FX market

Wed, 12/01/2010 - 19:01 | 770049 TruthInSunshine
TruthInSunshine's picture

The Bernank has now essentially tied a giant anvil around his ankle, shackled the other end of the chain around the taxpayers in the United States, and has put a gun to his head, while leaning off the side of the building.

Does anyone know how much toxic shit Bernank has in Maiden I through Maiden Lane XXXXXVVVVVIII, bought essentially with taxpayer money?

 

 

That's what happens when you let a wolf guard the hen house, Amerika!

 

 

Wed, 12/01/2010 - 19:05 | 770072 Fraud-Esq
Fraud-Esq's picture

Perhaps now they'll finally be FORCED to explain what EMPIRE really means and who runs it (The Fed or the Constitutional Democracy?).

The answer has been obvious since WWII. But - no one wants to talk about it openly. 

Wed, 12/01/2010 - 19:09 | 770087 Millivanilli
Millivanilli's picture

Justice in the UK is just like the US when it comes to losing 45 BILLION DOLLARS...

Fred Goodwin escapes sanction for taking RBS to the brink of collapse

FSA poised to conclude 17-month investigation into crisis at RBS without taking sanctions against any individual director

The Financial Services Authority is poised to announce it has closed its investigation into Royal Bank of Scotland and will take no further action against any of its former directors – including chief executive Sir Fred Goodwin – despite the £45bn bailout of the Edinburgh-based bank.

http://www.guardian.co.uk/business/2010/dec/01/fsa-no-action-fred-goodwi...

Over here in America NOT ONE MAJOR CEO has been prosecuted. No subpoenas , indictments, or charges. Apparently market manipulation, securities fraud, money laundering, etc.. are all legal for the WEALTHY and CONNECTED.

Wed, 12/01/2010 - 19:15 | 770107 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

I believe Angelo Mozilo's tanning-bed was repo'd.  Must have been hard for him.

Wed, 12/01/2010 - 19:14 | 770103 max2205
max2205's picture

He saved the world. Nobel prize in the bag now. Just buy the spx and retire comfortably 2-3% dips are ok now but no more.

Wed, 12/01/2010 - 19:35 | 770162 Arthur
Arthur's picture

Have we gotten our money back?

Wed, 12/01/2010 - 19:38 | 770166 bugs_
bugs_'s picture

Too bad they didn't list the foreign banks that had access to the window by virtue of owning a US bank (i.e. BBVA)

Wed, 12/01/2010 - 19:38 | 770172 suteibu
suteibu's picture

So, does this explain the problems with the Irish banks?  Seriously.

Can we then identify the banks that will cause problems in Europe by who is not on the list?

Wed, 12/01/2010 - 20:15 | 770250 unky
unky's picture

There are a lot of german banks on this list and look, the economy is running great. German government bonds are seen as most safest of all € countries.

Wed, 12/01/2010 - 20:19 | 770263 suteibu
suteibu's picture

Yup.  Maybe who isn't on the list is of equal importance.  Future takeover targets of the EU?

Wed, 12/01/2010 - 19:39 | 770176 swissinv
swissinv's picture

by the way Syngenta is not a bank, why does it appear on this chart?

Wed, 12/01/2010 - 19:42 | 770186 suteibu
suteibu's picture

Neither is Mitsubishi Corp.  But they have tons of investments everywhere.

Wed, 12/01/2010 - 19:46 | 770197 swissinv
swissinv's picture

http://www.mufg.jp/english/ (holds by the way significant stock portion in Morgan Stanley) but I haven't heard from a Syngenta bank yet

Wed, 12/01/2010 - 20:02 | 770228 suteibu
suteibu's picture

MUFG, also on the list, is a bank, though not the same as Mitsubishi Corp.

Bank of Montreal
Caixa Geral de Depósitos
Mitsubishi UFJ Financial Group
Shinhan Financial Group Co Ltd
Mitsubishi Corp
Aegon NV
Royal Bank of Canada
Sumitomo Corp

Wed, 12/01/2010 - 19:41 | 770180 Andrew G
Andrew G's picture

Rabobank - not to be confused with the Robobanks (of the mainland USA)

Thu, 12/02/2010 - 03:44 | 771178 jaap
jaap's picture

or rob-a-bank...

Wed, 12/01/2010 - 20:22 | 770275 trav7777
trav7777's picture

so we've got 3/4 of the world's debt in dollars.  Wonder what this latest euro contagion is going to cost them in terms of swaps.

So their banks pledge euros to us for our dollars which they need for repayment.  We're gonna JACK the euro.  Fed will have tons of euros, has their gold in their basement.  LOL.  Hopefully, we can buy the Continent with our side of the swap.

As they were dumb enough to borrow in our currency, we can set the price for borrowing it.  And, even now that we hear the dollar is dead and everyone is pissed we're printing it, CNY is still pegged to it and freakin countries are still sourcing dollar debt for their own purposes, even ones who beef the USD, like Brazil

Wed, 12/01/2010 - 20:30 | 770291 Buttcathead
Buttcathead's picture

damm, no wonder I lost everything staying short the market.  Sure does suck to be right and too small to suceed.  Fuck you Ben Bernack !  

Wed, 12/01/2010 - 23:16 | 770676 I Am The Unknow...
I Am The Unknown Comic's picture

At least I am not alone!   Buttcathead, you described my situation to a tee!

Wed, 12/01/2010 - 20:36 | 770306 HankPaulson
HankPaulson's picture

This looks like exportation of inflation or money laundering. Remembering that the USA printed at least 1.5 trillion dollars in the last few years. It would be useful to know what are the reciprocal obligations of these "foreign" banks.

Wed, 12/01/2010 - 21:56 | 770433 Everybodys All ...
Everybodys All American's picture

Can someone tell me is this action taken by the Federal Reserve legal or illegal? If it is llegal why were they fighting the disclosure of this information. Were they concerned thebanks who took the largest loans might be attacked by the shorts again?

Thu, 12/02/2010 - 00:40 | 770909 Sean7k
Sean7k's picture

Perfectly legal. Their mandate is pretty far reaching.They were empowered by Congress, thereby gaining your approval. Of course, they do not always want people to know the actions they take as some may want to change the system. Few people like the idea of US taxpayers on the hook for foreign banker bailouts. 

Wed, 12/01/2010 - 22:02 | 770469 Ned Zeppelin
Ned Zeppelin's picture

If you want to get the attention of the Tea Partiers, suggest as a practical matter less villification and more information of this type provided to them in easily digestible portions. 

"Your taxpayer dollars were used to fund foreign banks. Here's how." 

Thu, 12/02/2010 - 04:53 | 771216 The Market Sniper
The Market Sniper's picture

To Americans Bailouts of foreign banks may sound like anathema.

 

However It is Important to remember that UBS and the other major recipients were the worst effected by toxic debt that was missold (and admittedly misbought by fools) by Wall street.

 

The CDO's of US sub Prime was a US creation... It is likely Foreign governments would have sued US banks for all these Banks going under & taking hits had a 'deal ' not been done.

The sheer scale of reparations and the lengthy International court proceedings would have overhung the financial system and would have required settlement US banks could not have afforded.

 

Whilst EU banks naivety helped spread the virus into their home markets. This entire charade was greed and Non-underwriting due to wall street that created the Sub Prime debacle and unsupervised securitization markets and a lack of US adminstration regulation... that has placed the Globe at peril.

 

US citizens at the end of the day are bearing the burden, of their own inept Government and Greed is good bankers..one way or another the cost would have come back to them.

Thu, 12/02/2010 - 07:55 | 771301 overmedicatedun...
overmedicatedundersexed's picture

marketsniper, you are the problem..

blame John Q public for kleptocrats raping of the public coffers..

your post was the most disgusting I have seen here on ZH.

you only left out the billions in bonus money paid out to the elite insiders from the bail outs 

which by your logic would be the public's JUST debt. 

regulation was at fault..LOL yeah pass more and see how effective they will be in controlling the kleptocrats

Thu, 12/02/2010 - 09:26 | 771364 Bagsnatcher
Bagsnatcher's picture

Kinda silly to write that "The FED spent 6Bio of taxpayers money to save Handelsbanken". It sounds as if the bank got the money for free and did not have to pay them back! I can safely say they did WITH INTEREST so the taxpayer in US should be happy that FED lent that money. THEY MADE MONEY ON THE TRADE!!

Thu, 12/02/2010 - 10:26 | 771490 dizzyfingers
dizzyfingers's picture

 

Trading Away Our Future: How to Fix Our Government-Driven Trade Deficits and faulty Tax System Before It's Too Late (229 pages),

published by Ideal Taxes Association in 2008 can be ordered online now:

We are Trading Away Our Future and most economists have been caught with their heads in the sand. They think that the trade deficits are the result of free market forces. But the trade deficits are caused by the foreign government mercantilist practices and the foolish subsidies that the US tax system gives to foreign savings. Here are some quotes from the book:

  • “By investing their trade surpluses in US assets, Japan, China, South Korea, and several other countries are preventing any correction to the trade imbalance. The result: chronic trade deficits in the United States.” - Chapter 1
  • “The loss of manufacturing jobs does not translate into unemployment in the US economy; it translates into lower median wages. The displaced workers eventually find jobs but at an average lower wage. When former Ford workers now flip burgers for much lower wages, good jobs were lost even though unemployment did not rise.” - Chapter 1
  • “Import Certificates, whether the Buffett plan or the Richman plan, may be the only way to solve the trade deficit problem without precipitating a crash in the value of the US dollar.” - Chapter 4
  • “We would also make it completely illegal for foreign governments to buy stock in US corporations, as they are currently doing through their Sovereign Wealth Funds. US capitalism should not be for sale!” - Chapter 4
  • “The FairTax stands up well to the criticisms leveled against it. Just as its advocates state, it would eliminate the high cost of complying with the income tax code and it would lead to increased investment and long-term economic growth.” - Chapter 8
  • “As foreigners continue to purchase US financial assets and the United States continues to lose industries, China will emerge as the dominant political and economic power in the world.” - Chapter 9
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