"This is the banks that have formerly had names of quality, yet they have resorted to taking what amounts to emergency interest free loans. We would love the opportunity to appraise their assets and see how solid they really are." said Ben Boothe of http://www.benboothe.com
Could it be that the country club gang of Giant Money Market bankers, have sucked out capital that could have been utilized to restore economic health in heartland USA?
SEE THE LIST OF FINANCIAL INSTITUTIONS THAT HAVE TAKEN SECRET LOANS FROM THE FEDERAL RESERVE BANK.
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)and many many more including banks in Belgium.
This is the list of banks that received secret loans the Federal Reserve Bank, in recent years.
CitiGroup has been noted for charging consumers 29% on credit card loans and revolving credit, in direct opposition to the will of Congress and the will of the American people. "I simply think they don't care, they are only ruled by one ethic. Greed". said one Community Banker.
It would be very interesting to see the "insider trading" of Citigroup stock by it's bank employees, especially those at the top.
When hundreds of thousands of USA businesses are going broke for lack of business loans and financing, it seems strange, that the "Big Boys" are recipients of loans and aid from the Federal Reserve. The only logical explanation is that they are in trouble and desperate for help.
What would be wrong with these banks selling off their banking offices, back to local community bankers, who are "real" bankers with a sense of loyalty, to their communities and to their customers. It would diversify risk, and my observations over the years suggest that community bankers are better managers that the "Big Wall Street Traders".
This is why they are so worried about Europe. Our Federal Reserve has loaned Europe a ton of money. If Europe defaults, our Federal Reserve, and American Banks, take a huge hit, that we really can't afford now.