U.S. Gave Tens of Billions to Libor-Manipulating Banks ... Even AFTER Learning about the Manipulation

George Washington's picture

You know that Libor is the largest economic scam in world history and the largest insider trading scandal ever.

You know that the Federal Reserve knew about the manipulation by August 2007. And see this.

But did you realize that the Fed and Treasury threw billions of dollars of taxpayer money at Barclays and the other Libor-manipulating banks after they knew about the manipulation … and did nothing to stop it?

As Richard Eskow notes:

Thanks to the GAO audit of the Fed — an audit which it vigorously resisted — we know that Barclays was the fifth largest recipient of emergency loans. Bailout loans for Barclays came to $868 billion. That means that Barclays probably made billions off the reduced interest rate alone, courtesy of the American people.


Those loans were granted between December 2007 and July 2010. That means the Fed was doling out billions to Barclays after it learned that the bank was lying about its LIBOR rates.

Indeed, all of the probable Libor manipulators – including Citi, JP Morgan Chase, Bank of America, UBS, RBS and Deutsche – were huge recipients of bailout money courtesy of the American taxpayer:

Table 8: Institutions with Largest Total Transaction Amounts (Not Term-Adjusted) across Broad-Based Emergency Programs (Borrowing Aggregated by Parent Company and Includes Sponsored ABCP Conduits), December 1, 2007 through July 21, 2010

Bailout U.S. Gave Tens of Billions to Libor Manipulating Banks ... Even AFTER Learining about the Manipulation

Source: GAO analysis of Federal Reserve System data.
(Click table for larger image)

No, the criminals haven’t paid back the bailout money, American taxpayers are still bailing them out and helping them grow bigger, and the banks are committing more fraud every day.

The government isn’t doing anything to rein in the big banks … no wonder people are starting to call for bankers’ heads.

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Bicycle Repairman's picture

Wait a minute.  The FED and the big banks conspired on interest rates to maximize their profits.  No way, dude.  NO WAY!!

Hedgetard55's picture

Bernanke saved the world remember? Time's "Man of the Year". Roboturd's man crush and hero. He will never do any time for his crimes.

disabledvet's picture

But I thought that was our Rep's job? "Get elected, bailout the bankers, launder the winnings, repeat." Was it too obvious this time?

Snakeeyes's picture

I tried to explain it to Darrell Duffie on Fox Business.

Bernanke is Col Mustard. He did it with a printing press in the Fed Bldg.


alfred b.'s picture


   The Federal Reserve is party to, involved in and/or the initiator of the rigging in ALL markets.

Buy Physical gold and silver.


Benjamin Glutton's picture

Margin Stanley caught stealing from Germans.

FRANKFURT | Wed Jul 11, 2012 7:17am EDT

(Reuters) - German prosecutors have opened preliminary proceedings into alleged links between Morgan Stanley's (MS.N) top dealmaker in Germany and the former premier of the regional state of Baden-Wuerttemberg, relating to the state's purchase of shares in German utility EnBW (EBKG.DE) in 2010.


The Stuttgart public prosecutor's office said "sufficient and actual clues have emerged" suggesting ex-premier Stefan Mappus could have made himself liable to prosecution for breach of trust, while Morgan Stanley's Dirk Notheis could have made himself liable to prosecution for aiding and abetting breach of trust.


In a statement on Wednesday it added several premises had been searched as part of the proceedings and a number of documents were seized.


Morgan Stanley said it was supporting the investigation.


Prosecutors are probing Notheis, 44, who ran Morgan Stanley's operations in Germany and Austria for more than three years, but was granted leave of absence by the bank last month following an uproar over emails he reportedly exchanged with Mappus.


German newspapers in June published copies of emails Notheis reportedly sent to Mappus in 2010, when the southwestern state was trying to purchase a stake in local utility EnBW from French energy group EDF (EDF.PA).


The reports sparked a wave of criticism, in part because it highlighted the cozy relationship between bankers and politicians at a time when many Germans are up in arms about the role banks have played in the global financial and euro-zone debt crises.


The prosecutors also quoted a report by a government audit body which said the purchase price paid by Baden-Wuerttemberg for the stake in EnBW was at least 180 million euros ($220.6 million) too high.


According to the opinion of a separate report drawn up by auditors Warth & Klein Grant Thornton, which was mandated by the regional state's government to assess the deal, Baden-Wuerttemberg had overpaid by around 840 million euros, daily Handelsblatt reported on Wednesday.



BlackVoid's picture

"But did you realize that the Fed and Treasury threw billions of dollars of taxpayer money at Barclays and the other Libor-manipulating banks after they knew about the manipulation … and did nothing to stop it?"

And how is that surprising???

It is almost sure that the FED was involved in giving the instruction to manipulate LIBOR.

Joebloinvestor's picture

Capital punishment for capital crimes.

These guys do more damage to society then any serial murderer.

tony bonn's picture

not only should bankster's heads be rolling but so should politicians starting with george obamney jr.

these people, far from being grand master jedi saviors of the universe, are low rent criminals with iqs to match......the stupid resort to crime to prosper because they are incapable of earning an honest living.

this crime is another indictment against higher education and i for one damn it as a criminal incubator for allowing second rate intellects to pollute academic studies when these punks should be flipping hamburgers and mowing lawns - and no offense to hamburger flippers and lawn mowers - god knows you are doing honest labor.

thank you, as always george, for exposing the criminal putrefaction in the fed.

Bansters-in-my- feces's picture

My statement to the articles headline is "well of coarse they did"


paint it red call it hell's picture

I, I feel so cheap............

i-dog's picture

More cowbell, George! We need more cowbell!!!

purplefrog's picture

The FED was created to protect/prosper the banks (certain ones), and that is exactly what it is doing?

sgt_doom's picture

To better understand the underlying modern history behind GW's outstanding post, a brief refresher below.

The Financial-Intelligence-Complex:  its semi-secret history

The Financial-Intelligence-Complex, level one of the control apparatus of the economic elite, came into existence during and in the aftermath of World War II.

The sole purpose was to increase the wealth of those behind its creation while extending and consolidating their control over the public.

The Wall Streeters who had joined government service during World War II, the members of the wealthiest families and their lackeys (the Rockefeller, Mellon, Du Pont, Morgan and Harriman families, etc.), created the OSS and various other intel outfits, convinced President Truman --- a man clearly out of his depth when dealing with the economic elite --- to create the CIA as the anchor pin for America’s intelligence establishment, which the Wall Streeters would then move back and forth between (that is, between the Street and various intelligence directorates), insuring consistent command and control.

The formation assistance was originally provided by the head of Britain’s MI6, accompanied by his special assistant, Ian Fleming.

The CIA, along with later intelligence organizations, the DIA, NSA, State’s Bureau of Intelligence Research, etc., would provide the manpower for ensuring and expanding their corporate wealth:  the overthrow of Iran’s Mohammad Masaddeq in 1953, Arbenz of Guatemala in 1954, Sukarno in Indonesia in 1967, etc., and various other strictly economic/financial operations.

The Rockefeller, Mellon, Morgan and other of the wealthiest families had extensive oil, mining and agricultural productions throughout Latin America, so this was the region for constant economic warfare, along with the oil-rich Middle East.

Almost concurrent with the creation of the American intelligence establishment, they created their MK ULTRA program, aptly named for the extraordinary breadth and scope of their undertaking.

This wasn’t simply a subproject pertaining to spy planes or spy satellites; this was the grandiose plan for psychosocial, psychopharmacological, and public opinion control at the most minute levels.

The often-repeated “programmed assassin” events comprised only the most miniscule part of their incredible program.

A strong lack of curiosity, an almost inbred apathy and urge towards group consensus, was only one of their ultimate goals.

The almost absolute control of their message, by structuring the dissemination of the “news,” popular opinion and popular culture through a network of think tanks, institutes, foundations, trusts and various and sundry astroturf operations, is truly mind boggling.

Incorporating the work of advertising and public relations genius, Edward Bernays, with the subsequent research of countless behavioral scientists, biologists and pharmacologists, the plutocrats of the Financial-Intelligence-Complex have created a manufactured reality for the majority, scary in its depth, stunning in its comprehensive coverage.

Today in America, few question the ownership of anything; the primary source of control authority.

Fewer still question even the value of knowing who actually owns those monstrous banks, oil companies, health insurance giants who create our so-called “healthcare reform” --- or the munitions makers who continuously receive those incredible government contracts!

And all the technical achievements go towards their wealth increase:  an SR-71 spy plane, flying the exact same flight plan, the exact same time each day, for five consecutive days in a row, is brought done on the fifth day by the North Vietnamese, around 1972.

Was it following enemy troop movements?

Negative --- it was recording drug shipments out of the Golden Triangle involved with MK ULTRA and ultimately profiting certain members of the super-rich.

(After tracking the SR-71 over flight through Southeast Asia, and using technical assistance provided by the Soviets and Communist Chinese, the North Vietnamese launched a series of missiles, exactly timed to detonate in proximity of where the Blackbird should appear.

This created a wall of shock waves, causing the spy plane to tumble out of control, with its two-pilot crew punching out as the bird plummeted down to the South China Sea.

Among some of the lies in Richard Bissell’s autobiography, was the lie that the SR-71 had never been brought down by a foreign power.  Let us hope Richard Bissell’s grandnephew, Robert Mueller III, the director of the FBI, is more honest than his granduncle Bissell.)

When Reagan appointed Wall Streeter Casey to be CIA director, Casey’s first action was to classify earth resource data from the spy satellites, once available to the public, now only to be shared among Casey’s Wall Street cronies.

Are all those intercepted commercial communications about “national security”?

Or really is it to enrich those American members of the Transnational Capitalist Class?

No, national security has never entered into the equation of the existence of the American intelligence establishment --- only further profit for the Financial-Intelligence-Complex beneficiaries.

At the present time, with the privatization of America’s intelligence community, the corporate takeover of congress and the Supreme Court, they are in their endgame and, unfortunately, we are their pawns.

The first secretary of the Treasury, Alexander Hamilton, once argued that the government should always intercede in the private sector when corruption abounds --- he was later assassinated.

Andrew Mellon, the Treasury secretary during the three administrations leading up to the Great Crash and Great Depression, was the first to publicly utter the phrase:  ..making the world safe for democracy.”  --- Now he should have been assassinated!


ilovefreedom's picture

Sounds about par for the course.

Did anyone think the FED or the government are morally superior?

Unfortunately most citizens still think government has their best interests at heart and that the two parties merely squabble over how to make this country better.  But the only detail that matters is whether you're one of the sheep to be led or one of the cattle to be slaughtered.

vast-dom's picture

the fed was INSTRUMENTAL in spurring on LIBOR and such. the fed manipulates rates every day so the banks just helped them and vice-versa. no big surprise here.

HardAssets's picture

BigBanksBigInsiderCorporationsBigGovt are all the same -  with top insiders going through a revolving door from one sector to the other, and back again. Its one big criminal syndicate, but far more destructive than the mafia. (Afterall, the latter doesnt kill thousands of innocent civilians from the air using jet aircraft and drones).

Most people can't wrap their brains around this. They don't even wanna try to connect the dots.

Much easier to wave a flag and put a DemoRepublicrat bumper sticker on your car - -   DUMBA*S IN 2012

NotApplicable's picture

Yeah, especially the ones concerning voting in support of the current political system while fully recognizing it as a criminal cartel.

Why do you accept your enslavement in such a fashion? Are you really incapable of having a self-image that doesn't rely upon your existence as a "citizen" under the control of an armed gang?

You know, you could really be a great writer, but until you break free of your bonds, you're just another incoherent statist fighting for control of the gun in order to make it all better.

Which is exactly the activity that makes it all worse.

Give me a fucking break...

mrktwtch2's picture

whats done is done..lets try to figure out how to get the economy growing again..its been 4 yrs aleady!!

Bansters-in-my- feces's picture

mrktwtch2,you is 1 dumb fuck.

Whats the job paying...?

swmnguy's picture

I suspect "mrktwtch2" is doing a wee bit o' trolling here.  "MillionDollarBonus" style.

DosZap's picture

American taxpayers are still bailing them out and helping them grow bigger, and the banks are committing more fraud every day.

No, we're not, they are just adding to the debt,it will never be repaid.

None of it. To repay debt one must have a large and vibrant workforce with jobs for all.......never again will the US see it.

The IRS will be going after people who are turnips, and we know about turnips.

falak pema's picture

one big happy family; when a brother is in need we all chip in; even the non family muppets they love to call "you the people" officially and "sheeple" in private.

Wow, trickle down economics is like Niagara falls for the family. 16 T and forever growing.

Lovely to see democracy at work, socialising debts and privatising profits.

Isn't that what Big Business always had as motto?

Any colour provided its black, and we get paid on the button with money borrowed by you at our banks!

Hows that for free enterprise in reality! 

eatthebanksters's picture

Sorry to burst your bubble Falak, but that's not democracy at wrok, its corrupt people taking advantage of the system.  It's no different in China or Saudi Arabia, Russia, Iran, Syria or countless other countries.  It's the battle of man since time began, good vs. evil.  Well, its time to go primeval on the evil bastards with baseball bats and machetes...society has become way to lenient and the bad guys are walking around knowing they are untouchable.  While Timmy and Ben try to keep confidence in our financial system they have forgotten that you need confidence in our legal system for things to work as well...they leave that to the other guys.  I'll tell you what, if you take a few of these corrupt bastards out of their offices and hack them up on 5th Avenue, the rest of the turds will get the message.  I think ass kicking time is coming sooner than later if we don't turn this thing around, somehow.

NidStyles's picture

Ahh Democracy, two wolves and sheep deciding what's for dinner. 

falak pema's picture

it was tongue in cheek; the cloak of Oligarchy hiding the iron hand inside the velvet glove and outer trappings of democracy. Our nation states in name are global oligarchies that use the facade of the past where the elected elite are not true servants of the republic. 

Popo's picture

The Fed is a private bank and is part of the cartel.  

We need guillotines.

HardAssets's picture

We need to figure out how to communicate this to people. In particular, to the Joe "Good Citizen" types who are the salt-of-the-earth, give-you-the-shirt-off-their-back-to-help types. Theyre not like we jaded cynics who regularly come here to ZH. Joe can't imagine people as criminal and traitorous as those that have been running this country for over 100 years.