The PJ Tatler

Libyan-owned bank received $5 billion bailout by Federal Reserve

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!”.