New data shows foreign banks biggest recipients of Fed money
 
By David Edwards
Wednesday, December 1st, 2010 -- 3:46 pm

[img_r]http://rawreplaymedia.com/media/2010/1012/federal-reserve_b.jpg[/img_r]The Federal Reserved released documents Wednesday identifying the recipients of $3.3 trillion in emergency aid provided at the height of the financial crisis.

"Two European megabanks -- Deutsche Bank and Credit Suisse -- were the largest beneficiaries of the Fed's purchase of mortgage-backed securities," The Huffington Post's Shahien Nasiripour reported.

More than $290 billion worth of mortgage securities were sold to Deutsche Bank, a German lender. Credit Suisse, a Swiss bank, got more than $287 billion in mortgage bonds.

"The mortgage purchase program has come under withering criticism by economists and financial experts who believe the Fed's initiative has unnecessarily inflated the housing market, and prevented the cleansing that pretty much all experts believe is necessary for a full economic rebound," Nasiripour wrote.

"In addition, the Fed disclosed details of 'swap' arrangements with foreign central banks," the Associated Press reported. "These occurred when the Fed traded much-in-demand dollars for foreign currencies to try to ease credit. The foreign central banks, in turn, lent the dollars to banks in their countries that needed dollar funding. The Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan were involved in the exchanges."

Banks weren't the only recipients of Fed money. Corporations like Caterpillar, General Electric, Harley Davidson, McDonalds, Verizon and Toyota also relied the programs.

In 2008, as commercial loans dried up, the Fed became the only source of loans for otherwise creditworthy corporate borrowers.

The data, which took months to compile and had previously been secret, was released Wednesday to comply with July's Dodd-Frank law overhauling financial regulation.

"The information spans six loan programs as well as currency swaps with other central banks, purchases of mortgage-backed securities and the rescues of Bear Stearns Cos. and American International Group Inc," Bloomberg noted.

"We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government," Sen. Bernie Sanders (I-VT) told reporters on Nov. 17.

"The act requires the Fed, after a two-year delay, to identify firms that, following the laws passage, borrow through its discount window and participate in its purchases or sales of assets such as mortgage-backed securities and Treasuries," Bloomberg observed.

Why is this news? The foreign press was reporting on this bailout money before our 2008 crisis. The problem is OUR press never mentioned this. The current EURO crisis proves that that bailout did not work.

"kidkeenan" wrote:

We are indeed trapped by our reputation and history and that's what "they" counted on.

None of this disclosure is news; did people think that our rotten-to-the-core securities were just stuck in a vault somewhere and not spread around as far and with as many iterations as possible? Did people think that the American economy going virtually belly-up and the banking sectors as well as entire countries abroad facing default and economic destruction was a coincidence? Gee, funny how that all seemed to happen at once, wun'nit?

But here's the thing, the economy is global and the folks that run the global economy are not fools. They have and are collectively fleecing the worlds citizens for every bit of wealth they can get their greedy hands on.

You know who was in on the scam? Make a list of the big financial institutions in the world that get bailed out by their own governments or ours. You can't skim the worlds wealth without help or some coordination of effort. The people that needed to know it was an investment system built on sand knew it because a world economy works the same for everybody. Everybody at the top is dirty because the system they constructed and maintain is dirty.

They, the largest institutions, bought in because they, like our own institutions are too big to fail in every country. The EU will help smaller EU countries. Our biggest investors will be repaid because we need their continued lines of credit. I'd be interesting in a list of countries that actually got screVVed on the deal- maybe our trading partners to the south, maybe some African countries, maybe some emerging industrial countries?

The most vast transfer of wealth in the worlds history happened in 2008 and 2009 and is still going on and I'd bet a dollar to a dime it's not only class based but race based.

"lottakatz" wrote: