When the Bush administration proposed TARP to prevent the collapse of the American banking system, one of the reasonsthere was opposition was that foreign banks might get bailed out. At the time, Fed Chairman Ben Barnanke denied they would receive funds. Well low and behold, he lied! Not only did Ben lie, he hid this from the public.
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.
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
“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.
Separate data disclosed in December on temporary emergency- lending programs set up by the Fed also showed big foreign banks as borrowers. Six European banks were among the top 11 companies that sold the most debt overall — a combined $274.1 billion — to the Commercial Paper Funding Facility.
So we borrowed money from China to bail out Foreign banks! The betrayal of the American taxpayers by the Progressive Bi-Partisan elite continues. Donald Trump is right, the world views us as suckers and takes advantage of us. Ben Barnanke is not only a sucker, he’s a traitor for helping Non American banks, with our borrowed money. They received help and in return, we get an anemic economy.