Revealed: Federal Reserve Funneled Money to Many Foreign Banks

Miscellaneous General
1

http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html

"U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.

The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record."

2

The reason for the borrowing by central banks is that the US Fed did not want disclose that mortgage backed securities in the USA had dropped significantly. To keep these banks afloat the US Fed was loaning them money and in the process creating inflation.

3

Talked about this on the LRC blog, as well as Ron Paul’s upcoming hearings:

Fed ‘Loans’ to Foreign Banks