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"Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system. However, news that banks such as Barclays of the UK, Switzerland’s UBS and Dexia of Belgium borrowed billions of dollars at favourable terms from US authorities may further anger critics already enraged about the Fed’s rescue of Wall Street. 'We’re talking about huge sums of money going to bail out large foreign banks,” said Bernie Sanders, the independent senator from Vermont. “Has the Federal Reserve of the United States become the central bank of the world?'”
Didn't Lehman Bros and Bear Stearns do business in America? They are NOT in business ANY MORE after recieving financial baiout money because they were "too big to fail!"
Neither Lehman nor Bear were bailed out. Lehman's ex-CEO Richard Fuld still whines about that to this day, and others point out how curious it is that Lehman was not given a bailout by then-Treasury Secretary Henry Paulson, who did indeed bail out other banks. Paulson was the ex-CEO of Goldman Sachs, a Lehman competitor.
As for the European banks, "pickpocketing" implies they did it without the Fed's consent or blessing. I think they had both, along with encouragement.
Actually Bear kind of was bailed out. They were going under so the Treasury basically pushed them onto JP Morgan and , importantly, gave loss guarantees on much of Bears worst assets.
As far as this news goes, all of those Europeans banks have large US operations, and the operative word here is they borrowed on a short term credit line. They weren't given a handout or a bailout. It didn't cost the taxpayers a dime.
Oh btw, Bernie Sanders is a communist. Just saying....
Senator Sanders is a socialist if any of you know what that means. The European Banks did not pick our financial pockets they sole the entire pair of pants.
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