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The PJ Tatler

by
Patrick Poole

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April 1, 2011 - 12:58 am

Bloomberg News reports that as domestic credit markets seized up for American citizens at the beginning of the financial crisis, the Fed was pumping $5 billion into a bank with a majority Libyan state ownership:

Arab Banking Corp., a lender part- owned by the Central Bank of Libya, used a branch in New York to borrow at least $5 billion from the U.S. Federal Reserve as credit markets seized up in 2008 and 2009.

The bank, then 29 percent-owned by the Libyan state, drew $1.1 billion from the Fed’s so-called discount window in October 2008, including $450 million during the week when hundreds of financial firms borrowed a record amount of emergency funding from the U.S lending program, according to data released by the Fed today. Arab Banking Corp. also owed about $4 billion to the Fed under other bailout programs in the fall of 2009, data released in December show.

Muammar Gaddafi was unavailable for comment, but I’m sure he says “thanks!”.

Patrick Poole is a national security and terrorism correspondent for PJMedia. Follow me on Twitter.
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