New data shows foreign banks biggest recipients of Fed money

The Federal Reserved released documents Wednesday identifying the recipients of $3.3 trillion in emergency aid provided at the height of the financial crisis.

“Two European megabanks — Deutsche Bank and Credit Suisse — were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities,” The Huffington Post’s Shahien Nasiripour reported.

More than $290 billion worth of mortgage securities were sold to Deutsche Bank, a German lender. Credit Suisse, a Swiss bank, got more than $287 billion in mortgage bonds.

“The mortgage purchase program has come under withering criticism by economists and financial experts who believe the Fed’s initiative has unnecessarily inflated the housing market, and prevented the cleansing that pretty much all experts believe is necessary for a full economic rebound,” Nasiripour wrote.

“In addition, the Fed disclosed details of ‘swap’ arrangements with foreign central banks,” the Associated Press reported. “These occurred when the Fed traded much-in-demand dollars for foreign currencies to try to ease credit. The foreign central banks, in turn, lent the dollars to banks in their countries that needed dollar funding. The Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan were involved in the exchanges.”

  • Share/Bookmark

Leave a Reply

You must be logged in to post a comment.

Radio Archives

Fundraising with GoGetFunding
Fundraising with GoGetFunding

Give Your Support

The Global Reality represents a tireless effort to search, gather, and present information that even some alternative media channels refuse to discuss, let alone the mainstream. This effort is provided with no advertisements, no selling of products or services that are irrelevant and useless. There is only one sponsor: YOU!

Support the information that's in your right to know, that "they" dare not want you to know.

Notice: We can now take manual credit card entries for DVD's or donations. Those who do not want to use Paypal can now send your credit card number, expiration date, 3 digit security code and zip code to globalrealityshow@gmail.com along with the amount of purchase and we can process your order into our Paypal account without you having to use Paypal at all.

One-Time Donation

Donation Subscription

Monthly Recurring Donations
Your Own Amount: $

Join Us on FedBook