Thursday, March 31, 2011

Secrets Revealed: Fed Unveils Bank Loans Made During the Crisis .com

Secrets Revealed: Fed Unveils Bank Loans Made During the Crisis

A massive cache of documents released by the Federal Reserve Thursday reveals that banks from every corner of the globe, large and small, turned to the U.S. government’s emergency bailout program for help as the credit crisis exploded in late 2008.

In addition to global banking giants such as Bank of New York Mellon (BK: 29.87, +0.20, +0.67%) and Morgan Stanley (MS: 27.32, +0.09, +0.33%), the documents show numerous, small regional banks tapped the Fed’s discount window, especially banks from areas hard hit by collapsing real estate markets, such as California.

Dexia, Erste Group and Depfa, were among the foreign banks that turned to the Fed as credit markets dried up and banks had no other alternative but to seek U.S. government bailout dollars.

Other big foreign borrowers were Norinchukin Bank of Japan, Bank of Scotland, and Germany’s Landesbank Baden-Wurttemberg and France’s Societe Generale.

The Fed released the trove of information after a lengthy court battle initiated by media outlets including FOX Business, which sought the data under the Freedom of Information Act.



Read more: http://www.foxbusiness.com/markets/2011/03/30/fed-release-publication/#ixzz1IEHngw1w

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