Hudson Castle Group, Inc – #27 recipient of Fed’s ‘secret liquidity lifelines’

Bloomberg  Nov 28, 2011  Excerpts:

“Hudson Castle Group Inc., a firm started by former Lehman Brothers Holdings Inc. executives, sponsored three asset-backed commercial paper conduits — investment vehicles that bought financial assets and raised money by selling short-term bonds. Such conduits were among “shadow banks” that “contributed significantly to asset bubbles” by converting “opaque, risky, long-term assets into money-like and seemingly riskless short-term liabilities,” according to a July 2010 report by the Federal Reserve Bank of New York.

On a combined basis, Hudson Castle’s three conduits had as much as $16.2 billion of outstanding loans from the Fed’s Commercial Paper Funding Facility in March 2009. They included Belmont Funding LLC, Ebbets Funding LLC and Elysian Funding LLC.

Peak amount of debt on 3/31/2009: $16.2B

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Here we see the Fed providing emergency funding to bailout a company that had “contributed significantly to asset bubbles” by converting “opaque, risky, long-term assets into money-like and seemingly riskless short-term liabilities.”

The Leviticus 25 Plan would access to liquidity for U.S. citizens – who had not “contributed significantly to asset bubbles” through “opaque, risky” carry-trade schemes.

The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (578)

 

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