Barclays Plc – #10 recipient of Fed’s “secret liquidity lifelines”

Barclays Plc is a major multinational banking and financial services company headquartered in London.

Excerpts from  Bloomberg  Nov 28, 2011:      

“There was not a direct subsidy to Barclays” from governments during the financial crisis, Chief Executive Officer Robert Diamond told a U.K. House of Commons hearing in London on June 8, 2011. While the company avoided taking government capital, it was more accepting of emergency cash from the U.S. Federal Reserve. Data show that the London-based bank borrowed $64.9 billion from the Fed on Dec. 4, 2008, more than two months after it agreed to buy the North American unit of Lehman Brothers Holdings Inc. in a bankruptcy auction. The London-based bank was still borrowing more than $40 billion from the Fed as late as June 2009, nine months after the Lehman deal closed. Sarah MacDonald, a Barclays spokeswoman, declined to say whether the bank also got liquidity from the Bank of England.

Peak amount of debt on 12/4/2008:  $64.9B                                 ____________________________

U.S. citizens deserve nothing less than the same access to liquidity that the Federal Reserve provided to Barclays.

The Leviticus 25 Plan

Deutsche Bank AG – #9 recipient of Fed’s ‘secret liquidity lifelines’

Even foreign banking interests, with U.S. subsidiaries, enjoyed massive liquidity infusions to help them deal with their faltering financial conditions and debt burdens.

Excerpts fromBloomberg  Nov 28, 2011:                                               “Deutsche Bank AG, Germany’s biggest bank, navigated the financial crisis without capital injections from the German government. The Frankfurt-based bank, which in 2008 reported its first annual loss since World War II, wasn’t so shy about getting liquidity in secret from the U.S. Federal Reserve. The lender tapped the Fed for $66 billion on Nov. 6, 2008 — $28.2 billion from the Term Securities Lending Facility, $21.8 billion from single-tranche open market operations and $16 billion from the Term Auction Facility. John Gallagher, a Deutsche Bank spokesman, declined to say whether the bank took emergency loans during the crisis from other central banks, such as Germany’s Bundesbank.”                                                                                             Peak amount of debt held on 11-6-2008:  $66B                                      ……………………………………    

It is time for U.S. citizens to be granted the same access to liquidity (their own money)  that was provided to major banking concerns – including foreign banks, like Deutsche Bank, during the financial crisis..

Deutsche Bank tapped billions from the Term Securities Lending Facility (TSLF), single-tranche open market operations (STOMO), and theTerm Auction Facility (TAF).

It is now time for the creation of a Citizens Credit Facility (CCF) to provide direct access to liquidity for U.S. citizens – to successfully manage their own financial challenges and reduce debt at the family level.

The Leviticus 25 Plan.

Income Inequality? Solved: The Leviticus 25 Plan

America has had 5 years of government-directed big money ‘solutions’ to solve our economic and health care problems.  Trillions of dollars have been pumped out through the government’s big pipes and the Federal Reserve’s various credit facilities.

The result:  over the past 5 years America has seen a growing disparity between rich and poor.

The latest official proposals to deal with this disparity are…. drumroll, please… more of the very things that have failed to work in the past (also known as, “if the soup is bad, just make more of it”).

The latest proposals, hot off the press are:                                                                             1.  Tax reform (higher taxes on the rich – to redistribute to lower quintiles of wage earners). 2.  Significant increases in the minimum wage.                                                                       3.  New extensions to federal unemployment subsidies.

These proposals do provide a ‘feel-good’ benefit for social-minded elite thinkers.

They do promote envy and resentment among the income classes in America.

They do benefit well-oiled, politically-connected groups in America – with only marginal ‘spill-over’ benefit for lower-income groups.

They do facilitate continued dependence on government.

They do not reward industriousness, hard work, wise-decision making.

They do distort price structures.

They do not advance the cause of economic liberty in America.

They have not worked in the past.

They will not work in the future.

…………………………. 

Now imagine an economic acceleration plan that extends liquidity direct to American families – in much the same way that the Fed pumped massive liquidity transfusions out to the big (domestic and foreign) banking interests over the past 5 years.

The Leviticus 25 Plan does just that – direct liquidity extensions to American citizens.

Everyone is treated the same.  It does not promote class envy.

Political favors are no longer part of the liquidity allocation scheme.

Hard work, industriousness, wise decision making is not penalized, but rewarded.

This Plan improves efficiency across the board, reduces cost, and helps to alleviate government-inspired price distortion in our economic system.

The Leviticus 25 Plan does not facilitate continued government dependence.  It promotes self-reliance and freedom from government interference in the affairs of daily life.

It delivers massive debt relief and real benefits to American families and advances the cause of economic liberty across the land.

The Leviticus 25 Plan pays for itself over 10-15 years.  No other plan does that.  Anywhere.

JPMorgan Chase – #8 recipient of Fed’s ‘secret liquidity lifelines’

Bloomberg  Nov 28, 2011:   “JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has touted a “fortress balance sheet” that helped his bank survive the crisis better than rivals. “The markets were always open to us,” Dimon wrote in a letter to shareholders in March 2010.

Data show the New York-based bank got Federal Reserve liquidity after its March 2008 acquisition of Bear Stearns Cos. and in early 2009 as debt markets froze. In February and March 2009, JPMorgan borrowed $48 billion from the Fed’s Term Auction Facility, as executives said liquidity was “strong.” In the March 2010 letter, Dimon said JPMorgan loaned as much as $70 billion to other banks after Lehman Brother’s failure and bought “a net $250 billion of securities” to help facilitate market liquidity. The Fed loans became public in late 2010.”

Peak amount of debt on 10/1/2008:  $68.6 billion