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Belgian Bank Dexia Was Biggest Borrower From Federal Reserve Discount Window

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http://www.telegraph.co.uk/finance/financialcrisis/8420060/Belgian-bank-Dexia-was-biggest-borrower-from-Federal-Reserve-discount-window.html

At the height of the financial meltdown, on October 24, 2008, Dexia's New York branch was used to borrow $31.5bn (£19.6bn). The total borrowing from all banks during that week climbed to $111bn, according to lending data released by the central bank on Thursday.

Depfa, a unit of the German lender Hypo Real Estate Holding, also tapped the window for $24.6bn.

The Fed was forced to disclose the names of the banks and the amounts they borrowed after a legal challenge by Bloomberg. The central bank argued the release of the data could discourage banks from using the window in the future.

"The information is backward-looking," said Ulrike Pommee, a spokeswoman for Dexia. "We experienced a great deal of tension concerning the liquidity of the dollar at the time." Dexia has since reduced its outstanding balance at the Fed to zero, said Ms Pommee.

The release of more than 25,000 pages of documents also revealed that many US banks had borrowed surprisingly little from the discount window, the Fed's oldest lending tool. The data showed that Germany's Commerzbank, Royal Bank of Scotland and France's Societe Generale all used the facility.

I wonder what data is in 25,000 pages of documents released? Any really interesting information?

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I wonder what data is in 25,000 pages of documents released? Any really interesting information?

What I don't understand is, given that free markets are meant to work best when everyone has full access to all the relevant information, this kind of stuff is kept secret for ages?

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The data showed that Germany's Commerzbank, Royal Bank of Scotland and France's Societe Generale all used the facility.

The myth of the "Piigs" has done its job. I may be the only one left who believes the major banks in Italy and Spain are more stable than their German equivalents.

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The myth of the "Piigs" has done its job. I may be the only one left who believes the major banks in Italy and Spain are more stable than their German equivalents.

If you owe the bank £100 million, it's your problem. If you owe the bank £1 billion, it's the bank's problem. If you owe the bank £50 billion, it's the bank's parent country that has a problem..

And if you business model consists of lending fantastic amounts of cash to people in order that they may build houses in the middle of nowhere, at a price that can only possibly be afforded with liar loans based on stupid income multiples, and even then requires far more buyers than actually exist, then you may end up taking a haircut.

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What I don't understand is, given that free markets are meant to work best when everyone has full access to all the relevant information, this kind of stuff is kept secret for ages?

Because free markets only exist in the fevered imaginations of delusional economystics?

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The myth of the "Piigs" has done its job. I may be the only one left who believes the major banks in Italy and Spain are more stable than their German equivalents.

Indeed..... Hypo Real were bailed out by the German state for 50Bn EUR and as far as i know there is still more waiting to hatch out when you look at where most of their "assets" lie.

Alot of their dodgy lending was done out of one of their Dublin subsidiaries - so we all know how that is going to end up. A high percentage of the Irish property bubble can be traced back to German Banks. Strangely Germany keeps quiet ( in denial maybe?) on this but does it explain why they have a vested interest in bailing out Ireland and how Ireland could perhaps extract better terms from its 'creditors' by threatening to default

There must be quite a few other German financial institutions with alot of dodgy stuff on their balance sheets keeping a low profile and avoiding publicity at the moment hoping that nobody digs too deep

http://en.wikipedia.org/wiki/Hypo_Real_Estate

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Because free markets only exist in the fevered imaginations of delusional economystics?

Yep it's just a theory on paper what appears not to work in reality. Human nature, greed etc... seem to get in the way.

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caught on doomberg last night that Goldmans under oath told congress they tapped the fed on one occasion....in reality, they did it 5 times.

Perjury is a felony with prison time....but not for bankers.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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