Ben Bernanke's Secret Global Bank <http://prwatch.org/node/9666>
**
*Mary Bottari, PR Watch *- From a quick review of the data now available
on the Federal Reserve website, we can see that the Fed took an
expansive internationalist view of its role, prompting U.S. Senator
Bernie Sanders to ask: "Has the Federal Reserve Become the Central Bank
of the world?"
When AIG was bailed out out in Sept. 2008 and immediately passed on huge
sums to overseas counterparties including Société Générale (France) and
Deutsche Bank (Germany), there was a public uproar. The Fed data out
today confirms what many suspected. This back-door bailout of foreign
banks was just the tip of the iceberg. The Fed data covers 13 programs
amounting to some $3.3 trillion in loans, we could only look at a few,
but in every program examined foreign banks were huge beneficiaries of a
taxpayer-funded lifeline. Central Bank Liquidity Swap Lines Aided
Foreign Central Banks
Central banks around the world, the governmental entities that serve as
a nation's primary monetary authority, drew heavily on the Fed's
currency swap lines beginning in December of 2007. Private foreign banks
also received billions from the Fed in exchange for mortgage backed
securities . The Fed created its MBS program in November 2008 and
eventually paid out $1.25 trillion. These facts were known. What we did
not know was that approximately half of these purchases were from
overseas financial firm including billions from Barclays Capital (U.K.),
Credit Suisse (Switzerland), Deutsche Bank (Germany), Royal Bank of
Scotland (England), UBS (Switzerland) and Nomura Securities (Japan). The
numbers are huge. Duetsche Bank sold some $290 billion worth of MBS to
the Fed.
The Huffington Post reported that like U.S. banks, major European firms
benefited from the Term Securities Lending Facility. Under this program
the banks were loaned securities for four-week intervals while paying
fees that amounted to a whopping 0.0078 percent.
Five European firms sucked up this free money including-- Credit Suisse
(Switzerland), Deutsche Bank (Germany), Royal Bank of Scotland (U.K.),
Barclays (U.K.), and BNP Paribas (France) -- borrowed $5.2-6.2 billion
in Treasuries 20 different times.
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