WILLS COMMENTS :
#05 puzzle piece:
The FED saved AIB from bankruptcy with a 27 billion dollar hand out : Fed kept AIB afloat with $27bn in emergency funds – Irish, Business – Independent.ie. I am posting the article up in full for it shows the backstory on the banks for what it is which is an insider system playing by its own rules and laws hiding away out of sight from the public mainstream, here it is :
‘The ECB isn’t the only one who has being keeping the shattered Irish banks afloat. Allied Irish Banks was a major beneficiary of the $3.3 trillion (€2.48 trillion) in emergency funding provided by the US Federal Reserve during the meltdown on Wall Street.
Files released by the US Federal Reserve, America’s central bank, reveal that AIB racked up cumulative borrowings of more than $27bn (€20bn) under the Fed’s Term Auction Facility, which was part of the response to prevent the complete collapse of the financial system around the time of the Lehman Brothers flame-out.
The scale of AIB’s borrowing from the scheme is enormous given its relatively small size in the US. Barclays Bank, which bought Lehman’s US operations out of bankruptcy, borrowed $232bn (€174 bn) from the Fed scheme.
AIB’s biggest single loan — $3.3bn (€2.48bn) — was borrowed from the Fed on July 2, 2009. Banks were on the verge of collapse as international money markets slammed shut during the credit crunch forcing the Fed to step in to provide emergency loans to prevent widescale bank collapse.
Details of 21,000 transactions highlighting the short-term loans made by the Fed were released last week, prompting outrage in the US that its central bank had been used to prop up foreign banks. AIB tapped up the scheme 18 times with more than $3bn borrowed on six occasions.
Despite the emergency funding from the Fed, AIB continued to lurch from crisis to crisis.
The bank is set to be nationalised as investors believe it has no chance of raising the funds needed to meet regulatory requirements.’
#06 puzzle piece :
The Fed and the Caymans: New ‘Jaw-Dropping’ Bailout Details
December 9, 2010 • 9:57AM
Analyses including some from the staff of Sen. Bernie Sanders, whose amendment has forced the Federal Reserve to release the details of its bank bailouts since mid-2008, continue to show that “TARP was just pocket change” and that the bailout was in the many, many trillions —
perhaps in the range of $16 trillion total. Much of it went to foreign financial firms, and/or was loaned by the Fed against crap collateral, in violation of the Federal Reserve law.
Two aspects of these reports are most shocking. First, foreign banks and financial corporations tapped 4,200 different loans/securities purchases under 13 different bailout programs of the Fed for $3.8 trillion total: the credit/financial arms of Toyota, Mitsubishi, Nissan, BMW, VW, Honda; the central banks of Mexico, Bavaria, and Korea, and the Arab Banking Corporation in Bahrain; the British Empire’s Inter-Alpha banks Société Générale, Santander, Royal Bank of Scotland, and Banco Popular; and other European megabanks ING, Dexia, HSBC. In one Fed program, the Commercial Paper Funding Facility (CPFF), foreign financial firms got 68% of the $396 billion in bailout loans.
Second, under one of those programs, the Term Asset-Backed Securities Lending Program (TALF), the Fed loaned at least $60.8 billion to more than 100 hedge funds, private equity funds, and other funds located in the Caymans or other British offshore havens.
These funds are, right now, conducting intense speculations on the bonds of various European nations, in particular those of Spain, Portugal, Ireland, Belgium, and now Germany; and they are publicly attacking the European Central Bank for failing to throw in enough of its own buying, to make sure they make superprofits. Is the Federal Reserve currently lending to those funds? Or, through the IMF, to those government?
Third, much of the information which the Sanders amendment required on what collateral the Fed was taking for its many trillions in bailout loans, is missing from Fed’s disclosure. But what Senator Sanders’ staff estimate so far, is that 36% of the collateral pledged to the Fed’s primary dealer [overnight] credit facility was merely stock — this is not allowed under the Federal Reserve Act — or bonds ranked below investment grade. Another 17% of the collateral was unrated — downright pornographic — credit or loans.
The biggest mass of low-grade/illegal collateral was pledged immediately after the September 2008 Lehman collapse, by Morgan Stanley and Merrill Lynch, which were clearly going to collapse themselves, without the Fed bailouts.