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
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!