Didn't the Fed expand the acceptable collateral for its USD loans? I suppose it the collateral later turned out to be the worth significantly less than its stated value - say if the collateral posted was based on dubious house market valuations - that might constitute a more significant risk to the Fed? It seems lending to foreign banks is not an issue if you're happy with the quality of the posted collateral, but less so if not...
The Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury in 2010. Had they not loaned to the Foreign banks a domino affect of failures would have occurred and the US $ would have collapsed along with our entire banking system. You'd be wiping your ass with dollar bills cause each perforated sheet of your toilet paper would have more value.
The no strings attached bail outs is where the thievery took place. In October 2008 the FDIC should have intervened, taking over the failed banks and transferring all assets to the Federal Reserve The banks were bankrupt and should have been nationalized and made part of the Federal Reserve Banking System. The profits made back could have been used to pay off our debt. Charges could have been brought against the former officers and bankers both by the FDIC and the shareholders. Instead the country is on the brink of bankruptcy but the banks made loads of cash. The bank executives who no doubt were engaged in fraud received record bonuses instead of jail.
I agree - actually what was particularly disgusting were the end of year record bonuses paid in late 2007, when the writing was on the wall...and then less than a year later the same firms were receiving taxpayer funded bailouts that really was criminal
No... It's complicated because Americans loved living the good life. When sh1t hits the fan, everyone suddenly starts getting agitated and looking for the culprit.