The U.S. Federal Reserve extended $126 billion in direct liquidity benefits to European banking giants Deutsche Bank and Credit Suisse during 2007-2010.
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…. Peak Amount of Debt on 11/6/2008: $66 billion
Credit Suisse Group AG, Switzerland’s second-biggest bank by assets, was the biggest user of the Fed’s single-tranche open market operations, or ST OMO, borrowing $45 billion in August 2008. Under ST OMO, securities firms swapped eligible mortgage bonds for cash. The Zurich-based bank’s U.S. brokerage also used the Term Securities Lending Facility, which allowed firms to swap certain debt securities for Treasuries that could be loaned out or sold for cash…. Peak Amount of Debt on 8/27/2008: $60.8 billion
And here we are today:
Seven days ago, Deutsche Bank turned in what various sellside desks described as “horrible”, “grim” results for both Q4 and 2015 as a whole.
The bank posted its first annual net loss since the financial crisis, reporting red ink that totaled more than $7 billion as investment banking revenue fell plunged by some 30%.
On Thursday, we learn that Credit Suisse lost nearly $6 billion in the fourth quarter. The 2015 net loss came to nearly $3 billion.
Shares in the Swiss bank plunged 13% to their lowest levels since 1991 …..
During the very period that the Fed was power-hosing hundreds of billions of dollars out to U.S. and foreign banking behemoths, over 14 million American families were losing their homes and millions of working Americans were losing their jobs.
America, right now, has a golden opportunity to restore financial health to American families – through the same type liquidity ‘life lines’ that were used to rescue global banking / insurance conglomerates five short years ago.
The Leviticus 25 Plan 2017 – $75,000 per U.S. citizen The Leviticus 25 Plan 2017 (1328)