Bernanke Provided Billions In Loans to Gaddafi → Washingtons Blog
Bernanke Provided Billions In Loans to Gaddafi - Washingtons Blog

Friday, April 1, 2011

Bernanke Provided Billions In Loans to Gaddafi


Documents produced by the Federal Reserve in response to an order from the Supreme Court show that Bernanke loaned billions to foreign banks through its discount window. As Bloomberg - which brought the lawsuit which resulted in the document release - notes:

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. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.

***

“The caricature of the Fed is that it was shoveling money to big New York banks and a bunch of foreigners, and that is not conducive to its long-run reputation,” said Vincent Reinhart, the Fed’s director of monetary affairs from 2001 to 2007.

***

“The American people are going to be outraged when they understand what has been going on,” U.S. Representative Ron Paul, a Texas Republican who is chairman of the House subcommittee that oversees the Fed, said in a Bloomberg Television interview.

“What in the world are we doing thinking we can pass out tens of billions of dollars to banks that are overseas?” said Paul, who has advocated abolishing the Fed. “We have problems here at home with people not being able to pay their mortgages, and they’re losing their homes.”

Indeed, billions of dollars worth of loans went to Libya. Senator Sanders asks why we loaned billions to Libya:

Sen. Bernie Sanders (I-Vt.) today questioned why the Federal Reserve provided more than $26 billion in credit to an Arab intermediary for the Central Bank of Libya.

***

Sanders also asked why the Libyan-owned bank and two of its branches in New York, N.Y., were exempted from sanctions that the United States this month slapped on other Libyan businesses to pressure Col. Moammar Gadhafi’s government.

“It is incomprehensible to me that while creditworthy small businesses in Vermont and throughout the country could not receive affordable loans, the Federal Reserve was providing tens of billions of dollars in credit to a bank that is substantially owned by the Central Bank of Libya,” Sanders said.

***

In the same letter, Sanders asked Treasury Secretary Timothy Geithner why the Treasury Department on March 4 let the Libya-controlled bank skirt the economic sanctions against Libya.

The senator also questioned why the Bahrain-based Arab Banking Corp. is even allowed to operate branches inside United States. “Why would the U.S. government allow a bank that is predominantly owned by the Central Bank of Libya – an institution on which the U.S. has imposed strict economic sanctions –to operate two banking branches within our own borders?” Sanders asked.

Previous information released by the Fed shows that foreign banks were also huge recipients of the Term Auction Facility commercial paper.

7 comments:

  1. Who wrote this? Bloomberg didn't get the info, Fox did.

    ReplyDelete
  2. So when do the people get that the IRS is the goon squad for the FED, and every tax return you sign bankrolls their insidious and evil takeover?
    STOP PAYING FEDERAL INCOME TAX! If you are terrified by this, then they've successfully turned you into a slave.

    ReplyDelete
  3. Audit the Fed? Did I hear someone say “Audit the Fed”?

    If not now-when?

    Is it too much to ask to cut threw the lies, secrecy and deception and simply audit the Fed so that we have some idea of where we really stand as a nation financially? Are we all helplessly resigned to our fate as they fly us into the ground?

    Without an audit, it is like driving down the road at sixty miles and hour blindfolded. You know you are going to crash; it is just a matter of time.

    There is a condition of criminal insanity in our government that rules with coercion, secrets, lies and deception. The criminals know that the public will want to bring them to Justice and hang them if the people ever see the truth about their back room deals and how much we citizens really owe.

    Bring the criminals to Justice today and hang them tomorrow for Treason. Not, bring them to Justice tomorrow and never hang them.

    Maybe a revolution is the only way to bring the criminals to Justice. In that case, we will be sure to hang ever last one of the conspirators. It is time to name the deck of cards. In this case, it will have to be a canasta deck!

    ReplyDelete
  4. Audit the Fed? Did I hear someone say “Audit the Fed”?

    If not now-when?

    Is it too much to ask to cut threw the lies, secrecy and deception and simply audit the Fed so that we have some idea of where we really stand as a nation financially? Are we all helplessly resigned to our fate as they fly us into the ground?

    Without an audit, it is like driving down the road at sixty miles and hour blindfolded. You know you are going to crash; it is just a matter of time.

    There is a condition of criminal insanity in our government that rules with coercion, secrets, lies and deception. The criminals know that the public will want to bring them to Justice and hang them if the people ever see the truth about their back room deals and how much we citizens really owe.

    Bring the criminals to Justice today and hang them tomorrow for Treason. Not, bring them to Justice tomorrow and never hang them.

    Maybe a revolution is the only way to bring the criminals to Justice. In that case, we will be sure to hang ever last one of the conspirators. It is time to name the deck of cards. In this case, it will have to be a canasta deck!

    ReplyDelete
  5. The Fed is one example of the plague of sovereign immunity that is saturating our culture.

    ReplyDelete
  6. ABOLISH THE FEDERAL RESERVE. THEY ARE NOT A LEGAL ENTITY OF THE U.S. GOVERNMENT. http://www.ampedstatus.org

    ReplyDelete
  7. The American people are a bunch of slaves with zero balls --- they are never going to get outraged about anything, unless you turn off their day time tv!!!

    ReplyDelete

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