Thursday, March 31, 2011
Not April Fools: for real, Fed bails out Bank of Libya $26 billion in credit
Sen. Bernie Sanders (I-Vt.) today questioned why the Federal Reserve provided more than $26 billion in credit to an Arab intermediary for the Central Bank of Libya.
The total includes at least $3.2 billion in loans that the Fed was forced to make public today in addition to earlier revelations under a Sanders provision in the Wall Street reform law.
“It is incomprehensible to me that while creditworthy small businesses in Vermont and throughout the country could not receive affordable loans, the Federal Reserve was providing tens of billions of dollars in credit to a bank that is substantially owned by the Central Bank of Libya,” Sanders said.
[Sanders press release, Release: Why Did the Fed Bail Out the Bank of Libya?, 3/31/2011]
Worse, read the full article to learn how the Libyan bank borrowed money at almost no interest and then loaned it back to the US at a higher rate.