Thanks to a Freedom of Information Act, FOIA, filed by the Fox Business Network and Bloomberg News, the Federal Reserve System was forced to reveal how much money they lent to banks and who got the cash. We now know why the Federal Reserve Bank has tried to keep secret who they lent some $3.3 Trillion dollars to during the Financial Crisis of 2008. Many of the banks were foreign, including the Central Bank of Libya! Here at home, banks like Washington Mutual, were borrowing $2 Billion dollars a day from the Fed’s discount window. Naturally, the biggest borrowers were the biggest banks, like JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs. Fed Chairman Ben Bernanke has been trying to keep the list of banks and amounts secret, as its release “might lead market participants to infer weakness.”

fed flooded cash to foreign banks

During the busiest period for the Fed discount window, the last week of October, 2008, 70% of all the money handed out was to foreign banks. On October 29, the busiest single day of all, some $110.7 Billion in loans, guaranteed by U.S. taxpayers, was dished out. Dexia SA, and Belgian-French bank received $26.5 Billion that day. Depfa Bank, based in Dublin, Ireland but taken over by a German holding company, walked off with $24.6 Billion. Talk about quantitative easing! . Other big names like the Bank of Scotland got $11 Billion on Oct. 29, and France′s second largest bank, Societe Generale, received a mere $5 Billion. Norinchukin Bank, based in Tokyo, got $6 Billion. In December, 2008, six European banks received a total of $274.1 Billion dollars Other large foreign banks like Bank of China, Deutsche Bank, Credit Suisse and Arab Banking Corp, which the Central Bank of Libya owns a large stake, were also borrowing heavily during late 2008, snagging hundreds of billions of dollars.

Back on the home front, Wachovia borrowed $29 Billion on just October 6, a week after it had already agreed to sell itself to Wells Fargo. What a bargain Wells Fargo got! Washington Mutual was another U.S. bank that was borrowing billions just before they went down the drain. Goldman Sachs borrowed the least, but then they didn’t have to. After all, they got over $60 Billion from the AIG bailout plus another $5 Billion from sugar-daddy Warren Buffett. Both Goldman and Morgan Stanley were given ′bank′ status, along with GE Financial, during the economic crisis and were allowed to use the Federal Reserve Bank discount window. This allowed them to borrow money at zero-percent interest, invest it and make a couple-5 percent, then borrow more to pay back the initial loan.

But the discount window was not the only avenue for shoveling out money during the Financial Crisis by the Federal Reserve System. The Primary Dealer Credit Facility was created earlier in 2008 after the Bear Stearns collapse as a means to help shore up non-bank entities like brokerage firms. Loans made by the PDCF were supposed to be backed by ′investment-grade′ collateral. However, in September, 2008, the Federal Reserve Bank loosened the rules and allowed junk bonds to be accepted. Oddly enough, even ‘regular banks’ also took advantage of using the PDCF during this time, like Bank of America and Citigroup, using Triple-C rated mortgage-backed securities to borrow some $111 billion dollars.

So, when you U.S. taxpayers wonder why you are paying more for gasoline at the pumps, or paying higher prices for food at the checkout aisle, or why you retirement nest egg has about 50% less buying power than it had 3 years ago, now you know why! Thanks to a Freedom of Information Act filed by Bloomberg and the Fox Business Network, that went all the way to the Supreme Court, the Federal Reserve System has been forced to reveal how much money and to whom they′ve been lending to for the past couple of years. A total of some $3.3 Trillion dollars of fiat currency was shoveled away by the Federal Reserve Bank to shore up domestic and foreign financial companies. Whether by using the Fed′s discount window, or the Primary Dealer Credit Facility, Ben Bernanke helped prop up companies who fooled themselves, and their clients and investors, after years of inflating mortgage-backed securities, which became worthless when the housing bubble burst. I only wish this was an April Fool’s joke, but sadly, the reality is that our entire fiat monetary system is a cruel mistress, which is due for bursting itself soon.

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