The Fed Bails Out Gaddafi’s Libyan Bank, Arab Banking Corp. of Bahrain, Banks of Bavaria, Korea and Mexico … But Shafts America

George Washington's picture

Fox Business notes:

The conflicts of interest and policy controversies in the Federal Reserve’s bailout of the financial system now include helping out millionaires, billionaires, foreign automakers, and companies whose executives sit on the board of directors of the U.S. central bank.



The Federal Reserve also bought more than $2.2 billion in commercial paper from the state-owned central bank of Bavaria, and it gave more than $23 billion in loans to the Arab Banking Corp. based in Bahrain, with an interest rate as low as a quarter of a percentage point. The Federal Reserve also lent more than $9.6 billion to the Central Bank of Mexico.






Banks worldwide tapped into the Federal Reserve’s emergency lending programs more than 4,200 times for a total of $3.8 trillion, estimates show.



Senator Sanders’ staff found that “several billionaires and tens of multi-millionaires received cheap loans from the Fed to invest in securities backed by auto, mortgage, credit card, student and mortgage loans,” Sanders’ letter says. That Fed program is called the Term Asset-backed Securities Loan Facility.



The rich include Christy Mack, the wife of Morgan Stanley’s John Mack, billionaire businessman H. Wayne Huizenga; and Michael Dell, co-founder of Dell Computer, hedge fund manager John Paulson and private equity honcho J. Christopher Flowers.






[Senator Sanders] also says that it appears the Fed provided loans to over 100 separate hedge funds, offshore funds, and other investment funds located in the Cayman Islands and other tax havens via the TALF program alone.






Sanders also wants to know why the Federal Reserve bailed out the Korea Development Bank, the state-owned bank of South Korea, by purchasing more than $2.2 billion of its commercial paper, and why it also extended more than $40 billion to the central bank in South Korea.

I’ve previously noted that the Fed bailed out the Central Bank of Libya under Gaddafi.

Indeed, Ron Paul – the current chair of the monetary policy subcommittee – says that one-third of Fed bailout loans – and essentially 100% of NY Fed loans – went to foreign banks.

The American people didn’t get to vote on these huge bailouts and low-cost loans to foreign banks.

Congress didn’t get to vote on them … they didn’t even know about them.

Independent economists didn’t have a chance to weigh in on whether shipping American dollars abroad is good for the U.S.

Indeed, it seems as if the Fed has chosen to help everyone but the average Americanchoosing the big banks and financiers – abroad or in the U.S. – again and again at the expense of the little guy. (The Fed is even intentionally curbing lending by the banks to Main Street.)

No wonder even the non-partisan Government Accountability Office calls the Fed corrupt and riddled with conflicts of interest.

No wonder high-level economists have said that the Fed caused both the Great Depression and the current economic crisis.

No wonder economists say that the Federal Reserve should be ended – or its powers be dramatically curtailed.

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Zero Govt's picture

Ben's a red (socialist) and loves transfering the counterfeit wealth ...socialism for the rich (er, rich bankrupt actually!) in America and all around the globe ...being a private bank with a monopoly on a countries money has to have its pay-offs.. presumably Ben is laying the groundwork for his shareholders like JP Morgan to spread its fraud and fleecing, sorry fudiciary and financial, services far and wide

Cult of Criminality's picture

The Neurotic alliance of terrorist`s organization otherwise known as NATO is helping them along.

Killing civilian populations is a perfect example of disregard for human life.They like to break you first, steal all your treasure,money, land resources,then kill as usual.

Global government is already in place.Babylon and Rome never went away they are still very alive and well.

On another note Rumor has it the Vatican or 'synagogue of Satan' is calling for a world monetary system.imagine that.

Word for the day...Diabolism

Good day to all

Goner's picture

"On another note Rumor has it the Vatican or 'synagogue of Satan' is calling for a world monetary system.imagine that."

Vatican calls for global oversight on world finances

JR's picture

Enjoyed your posts and agree, bet if you are “quoting” Jesus, it should read:  

I know your afflictions and your poverty – yet you are rich.  I know the slander of those who say they are Jews and are not, but are a synagogue of Satan. Do not be afraid of what you are about to suffer.  I tell you, the devil will put some of you in prison to test you, and you will suffer persecution for ten days.  Be faithful, even to the point of death, and I will give you the crown of life. -- Revelations 2:9

Cult of Criminality's picture

So does the fed

Financial terrorism at its best.

The U.S. Mob rule will ruin AmeriKa  like the cities they crush .their is no law for the criminal cartel. thats exactly why nothing has changed and will not change. Your messiah renegade obummer talking about change really means he and the fed ,central banks are out to get all of your change in the bank,in your purse,in your piggy banks,your wallet anywhere they can get it.

Only.......Its global now

 Look at Detroit,Camden N.J,Chicago,Just to name a few

Wild packs of dogs and people ,Camden cannot pay for street lights.

Zer0henge's picture

The Libyans like shoving objects up people's asses...