Fed Kept Taps Open For Banks In Crisis

On April 1, 2011 by stratagem

One of the biggest secrets of the financial crisis was disclosed Thursday when the Federal Reserve released thousands of pages of data showing heavy discount-window borrowing by foreign banks, regional U.S. banks and institutions fighting for survival.

When discount-window lending peaked at $110 billion on Oct. 29, 2008, European banks Dexia SA and Depfa were the biggest borrowers. Dexia took $26.5 billion that day, while Depfa Bank, a subsidiary of German Hypo Real Estate Group, took out $24.6 billion.

Citigroup Inc., which was bailed out three times by the U.S. government, borrowed just $500 million in August 2007 and $3.35 billion in September 2007

The Charlotte, N.C., bank also borrowed $2.3 billion on June 20, 2008, and June 30, 2008

The Fed also lent $2 billion to a unit of Washington Mutual Inc. on the day in September 2008

In August 2007, J.P. Morgan borrowed $500 million, posting $71.7 billion in collateral at the Fed

One of the largest emergency loans went to Wachovia Corp., the Charlotte, N.C., bank that was reeling from losses on mortgage loans and a customer exodus. On Oct. 6, 2008, Wachovia borrowed $29 billion from the Fed’s discount window

One surprise was multiple loans to a bank owned by the Central Bank of Libya. Arab Banking Corp., of Bahrain, got a $100 million, monthlong loan in September 2008

>> WSJ

Phantom Report: What about keeping the ‘Taps’ open for American families that lost their jobs, their homes and their belief in the American Dream. Federal Reserve is infested with   thieves and liars!

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