It looks like you're using an Ad Blocker.

Please white-list or disable in your ad-blocking tool.

Thank you.


Some features of ATS will be disabled while you continue to use an ad-blocker.


Fed's secret loans to banking giants revealed

page: 1

log in


posted on May, 26 2011 @ 04:31 AM

Fed's secret loans to banking giants revealed

Credit Suisse, Goldman Sachs and Royal Bank of Scotland each borrowed at least $US30 billion ($29 billion) in 2008 from a Federal Reserve emergency lending program whose details weren't revealed to shareholders, members of Congress or the public.

The $US80 billion initiative, called single-tranche open-market operations, or ST OMO, made 28-day loans from March through December 2008, a period in which confidence in global credit markets collapsed after the September 15 bankruptcy of Lehman Brothers Holdings.

Read more:
(visit the link for the full news article)

posted on May, 26 2011 @ 04:31 AM

The Federal Reserve Bank of New York, which oversaw ST OMO, posted aggregate data about the program on its website after each auction, said Jeffrey V. Smith, a New York Fed spokesman. By increasing the availability of short-term financing when private lenders were under pressure, “this program helped alleviate strains in financial markets and support the flow of credit to U.S. households and businesses,” he said.

One effect of the program was to spur trading in mortgage- backed securities, said Lou Crandall, chief U.S. economist at Jersey City, New Jersey-based Wrightson ICAP LLC, a research company specializing in Fed operations. The 20 banks - previously designated as primary dealers to trade government securities directly with the New York Fed - posted mortgage securities guaranteed by government-sponsored enterprises such as Fannie Mae or Freddie Mac in exchange for the Fed's cash.

Read more:

Read more:

Two years after it was ordered to reveal loans, the SHTF for the Fed? Maybe?

When I think of all the foreclosed homes right here in the Heartland of the USA, within walking distance of my still-occupied home, this makes me sick to my stomach.

The entire world will know, as of today, what the Fed and the Banks did, it won't take long for the 2008 meltdown's real source -- which in my mind amounted to financial ARSON -- to be seen and understood.

Try to slap an "austerity program" on us now? After all this? You've taken homes from the working people, used the proceeds of those repos to lend money to mega-banks, and now Congress will cut social systems like education, health care, and other essential "entitlements" to regular, ignorant-of-the-truth citizens to pay for it?

I am angry. Very angry.
(visit the link for the full news article)
edit on 26-5-2011 by wildtimes because: (no reason given)

edit on 26-5-2011 by wildtimes because: (no reason given)

posted on May, 26 2011 @ 04:42 AM

Under ST OMO, cash changed hands through repos, or repurchase agreements, which the central bank has used to move money in and out of the banking system for at least 60 years. In a repo, the dealer sells securities to the Fed and agrees to buy them back for a higher price after a set period of time.

Open-market operations traditionally use repos to influence the federal funds rate, which is banks' cost of short-term borrowing, said Sherrill Shaffer, the officer in charge of the discount window at the Federal Reserve Bank of Philadelphia from 1994 to 1997. He's now a banking professor at the University of Wyoming in Laramie.

When the central bank increases the money supply - by paying cash for securities in repos - interest rates tend to fall. When it drains cash from the system by selling securities in reverse repos, rates can climb.

Read more:

Can someone PLEASE enlighten me? Is this activity the sort of "short" and "long" stuff that the stock market traders use? Are the above so-called "repos" the same as "repossessed homes"? Or am I just too jumpy about money to read this calmly without flipping out.

I hope someone here more savvy than I in matters economic can help me understand. What is happening to us all?
What have they done??!!

posted on May, 26 2011 @ 05:05 AM
reply to post by wildtimes

Explanation: They are borrowing debt based fiat cash from other countries whose cash is also complete BS and just a game... Oh we can't do it this way right now [print cash.. = inflation] we will borrow from xyandorz [China?] and pay it back asap [28days.. wish I could get a short term loan at 0.01%
thats what evil.. the wholesale and retail division of the currency system when its just printed in the 1st place [well not for about 30yrs.. thats going to change and has already started with the gold and silver backed stellar idea that they pulled out the magicians hat AGAIN... I like that standard but it to is limited by everybodys acces to a very limited reasource in a growing population planet ... that is just reciepie for an even greater widening margin between the haves and have nots!
... but at least its real currency and not just *pooft!* imagination when the deadman tolls that shtf financial sitx!
: The answer is to make all infrastructure back the currency .. the do it with the debt currency..its ust bass ackwards ... where you [instead of the banks and loan merchants] supply the goods upon defaulting on the loan mortgage etc.

There is a Solution however!
Its called compressed air and with very simple and cheap technology can do it in ones own backyard AND TPTB would have no centralized control over that! Its also not an infationary currency as when its used to make another thing of whatever was sold [by using the energy from expanding that compressed air to generate that] the compressed air is removed from the monetary system and goes back to being good old thin air! Compressing air to a certain technically defined level [liquid nitrogen] turns it from a 'worthless' [$)] ubiquitous resource into a valuable product worth $ / litre!

Whats the percentage markup on that that comes from value adding by just compressing it?

Personal Disclosure: The answer to that question is Infinte % markup [generalizing a lot here as many more technical details to cover with tah subject specifically.]

P.S. TPTB can not fool OL ... as OL is already an idiot!
TPTB need to go try convince someone who is smart OK or aren't they even trying to pull the wool over anyones eyes anymore?
I was shawn short a long time ago when I joined ATS and OL likes it like that ... as who really needs a elite fringe obfuscating by getting in the way of whats really going on all the time!
OL will take his rosy tinted ATS goggles any day!

posted on May, 26 2011 @ 08:26 AM
The short story made long here: It's their monopoly money and they can do whatever they want with it.

This is further evidence (in my opinion) that there is no such thing as a 'national' (let alone federal) reserve bank.

The bank is a single entity - a supranational (transnational) banking cartel with virtual statehood rights in place.

The central banks of the world operate in each country as if it had something to do with that country's government when in fact it is no more than a corporate entity granted total control of monetization, policy, and interest rates.

When we hear of concerns about nations buying up each others' currencies, investing in countries, and threats of 'pulling back' from countries, we are all falling for the scam.

It is ONE global bank. There is a BANK NATION. And our global government leaders are complicit in concealing this reality for political expedience. It is further evidenced by their position of "you can;t let us fail or the entire global economy will be affected" or "Too big to fail."

The market is a con game, a casino for flash and launder purposes. And simply serves the same monstrous economic royalty manifesting itself into our country... setting laws, buying representatives, and extorting the fruits of the public's labor to support the "let's play global governance" games the self-appointed elite conjure up in social clubs like the CFR, the Royal Institute for International Affairs, the Trilateral Commission, and the Bilderburg group.

Sorry... woke up full of piss and vinegar today!

posted on May, 26 2011 @ 12:28 PM
reply to post by Maxmars

Sorry? Why are you sorry?? and thanks btw.
I understand it's a global system, and it frightens me to think how little we are aware of what goes on at "discount windows" unless we dig really deep. (grammatical correction? deeply.....?).

I woke up in the same condition this morning.

I am acquainted with a young person whose parent is part of the bankglomerate, and even that young person isIoblivious to the power held by her parent's position there, while aware of the parent's position, rank, and status. it's rather frightening.

Thanks for contributing ....

posted on May, 27 2011 @ 02:06 PM
Here is an interview with the journalist who broke the story, although probably adding nothing new to your original post.

Once again, more proof that there is a global entity which acts above any national interest yet controls the wealth of nations.
The massive transfer of wealth from the taxpaying citizen to this banking cabal is going on right according to plan.

However, now that the bankers (and the politicians working for them) have become so flauntingly arrogant with their methods, the populace is beginning to see what is going on, and the anti-austerity movements have begun.

People can see the imposed "austerity" measures for what they truly are, more transfer of wealth to the banks passed of as debt to the tax-paying citizen.

I am known to be very cynical, but in this case, I somehow have a glimmer of hope, that, because they have gone too far, the banksters' day of reckoning just might be coming. (Though I won't be holding my breath!)

the Billmeister

EDIT: Sorry, I could have simply written "yeah, what he said" about Maxmars' post... that'll teach me to read all the comments before posting! (And I'm usually good at that... no really, I am!)
edit on 27-5-2011 by Billmeister because: made obvious

new topics

top topics


log in