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Fed Injects Record $100 Billion Cash Into Foreign Banks Operating In The US In Past Week

Source: Zero Hedge | March 9, 2013

Those who have been following our exclusive series of the Fed's direct bailout of European banks (here, here, here and here), and, indirectly of Europe, will not be surprised at all to learn that in the week ended February 27, or the week in which Europe went into a however brief tailspin following the shocking defeat of Bersani in the Italian elections, and an even more shocking victory by Berlusconi and Grillo, leading to a political vacuum and a hung parliament, the Fed injected a record $99 billion of excess reserves into foreign banks. As the most recent H.8 statement makes very clear, soared from $836 billion to a near-record $936 billion, or a $99.3 billion reserve "reallocation" in the form of cash - very, very fungible cash - into foreign (read European) banks in one week.

Furthermore, as we first showed, virtually all the "reserves" created by the Fed end up allocated as cash at commercial banks operating in the US: both domestically-chartered (small and large), but more importantly, foreign. And of the $1.884 trillion in very fungible cash parked in various domestic and international US banks, just half of it, or $949 billion is actually allocated to US banks. The other half, or $936 billion, is parked within, again, very fungible cash accounts of foreign (read European) banks operating in the US. This is shown in the chart below (green area is cash of foreign banks), and what is also shown is the total change in the Fed's excess reserves, which proves, once more, that the Fed continues to fund European banks with hundreds of billions in cash on a week by week basis. And what is perhaps most important, is that of the $250 billion in new reserves created under QEternity, all of it has gone to foreign (read European) banks.

Read more: Zero Hedge Via: Black Listed News

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Cyril's picture

They just can't understand that feeding the Fat Banking Cat on

They just can't understand that feeding the Fat Banking Cat on, ad infinitum (or so they think), won't do any good to help him eventually... Never does.

Tsk tsk tsk tsk tsk.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

BUMP.

BUMP.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

defending the dollar

Maybe just maybe the Fed is protecting the dollar from a currency attack by defending it through foreign banks……..think about it, what better way to defend the dollar when you are in such a poor position. 11 trillion dollar net balance of payment deficit with only 148 million in foreign reserves to defend you currency and a 40 to 50 billion dollar month trade deficit…….this is a way to defend your currency without anyone knowing. You cannot print foreign reserves but you can print all the dollars you want, without this move the dollar would have been already done.

Ferners

It makes no difference to me where the banksters are incorporated who get the Fed's counterfeit moolah. Why should it?

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Jeopardy: What is the national debt that US taxpayers pay?

Whatever the Fed Reserve accounts as an expense, goes to our taxpayer tab. Even mythical "legal tender" created out-of-thin-air. The farther away money goes, the less likely it will return.... Ever.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

bump

Bump

donvino

Push Button Money Vs. Gold

So, the Fed can send $100 billion to US subsidiaries of European banks in one week with the push of a button, but when it comes to returning 300 tons of gold worth about $15.4 billion to Germany's Bundesbank, it will take seven years. That must either be how long it will take for all the re-hypothicated long term gold leases to mature, or how long it will take to mine and refine that much gold.

Ed Rombach

$16 trillion Give-A-Way: Foreign Banks ~ VS ~ Fed Banks

        Who got the $16 trillion?

To bank? ... or ... not to Bank? That is the question.

Whether tis nobler to suffer the slings & arrows... of foreign banks? Or the Fed Reserve banks? (Owned by who knows whom?)

The Looting Of America: The Federal Reserve Made $16 Trillion In Secret Loans

A one-time limited GAO audit of the Federal Reserve that was mandated... uncovered some eye-popping corruption at the Fed and the mainstream media is barely even covering it. It turns out that the Federal Reserve made $16.1 trillion in secret loans to their bankster friends during the financial crisis. You can read a copy of the GAO investigation for yourself right here. Your free credit report of your country's credit report. ~ Click here:

One of the only members of Congress that has wanted to talk about the GAO audit has been U.S. Senator Bernie Sanders. The following is a statement about this audit that was taken from his official website….

    “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world”

So precisely who got this money?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Thanks for your imput...

Mr Mark Twain

"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI

"The belief is worthless if the fear of social and physical punishment overrides the belief."

I Hate being put in a position that looks like I am defending

the Fed, because that couldn’t be further from the truth……..the truth is what I am defending.
I am just wondering if anyone really reads these reports or do you just believe it because someone put it on the internet ( like the commercial says….they can’t put anything on the internet that’s not true) or maybe you just don’t understand finance. Read the GAO report, on page 131 there is a spread sheet that shows a 16 trillion figure, but if you read the footnotes it explains the spreadsheet with a further spreadsheet that states that the borrowing was just over 1.1 trillion.
Just saying…….. either read and understands the material or don’t comment it……do not try and sensationalize it because if people believe they have been lied to they will not trust what you are saying.

Yes. Revealing footnotes. $1.1 Trillion line-of-credit balance.

Yes, I have passing recollection of the chart & footnotes to which you refer. Thank you. Yes, I do look at articles, footnotes & all... seeking high adventure.

Don't bother contorting yourself into a position that looks like you're defending a bank cartel. Might hurt yourself. Ain't worth it.

That chart & those two related footnotes you mentioned were seldom reported. Curious world. Those that got Fed loans, whether summing up many short term loans into slathers of cash... $16 trillion, or slithering by with a mere $1.1 trillion line-of-credit balance, they somehow managed to spend the Fed's gracious line-of-credit. Why & who got these secret loans is a troubling matter. Again, thank you for mentioning those footnotes.

Now that you mention your interest in footnotes....

$2 Quadrillion footnote about 55 Water Street flooding DTCC Submitted by Mark Twain, 12/01/2012

2011 (as reported in DTCC footnotes in 2012):

"Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US $1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US $39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US $500 trillion in gross notional value of transactions made worldwide across multiple asset classes."

Thank you for the important historic references you provide to our DailyPaul readers. Whether I over-stand or under-stand, I certainly enjoy your writing. Twas a pleasure crossing paths. Please take care.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Wow you misunderstood what I said

and prove my point all in the same response.

Case in point. Why revel in the destruction? You sensationalize the flooding of DTCC by writing this:

Where oh where has my $2 Quadrillion gone? Where oh where could it be? With my Dollars cut short... And my hours cut long... Where oh where could it be?

And highlighted these huge numbers as if you even understand what the DTCC does.
• $1.7 quadrillion
• 39.5 trillion
• $500 trillion
You cut and pasted everything written on the post as if you wrote it as being a source of knowledge when in fact you plagiarized it all and for no other reason than to blame the evil “bankster”.

Just wondering are you even a capitalist?......The bankers didn’t pass the laws that created the Fed, USG did, the bankers may have written the plan......but the USG is responsible for the creation.

Just so you know….the DTCC is a good thing…….a capitalist thing……a Libertarian thing.

• DTCC is an industry owned clearing house (meaning all the IB & CB pay for it to operate) for all the investment houses and banks. The $1.7 quadrillion is the dollar amount of traded securities throughout the years. The DTCC makes sure that all trades are cleared and settled so that the buyers and sellers don’t have any problems.
• The 39.5 trillion represents the dollar amount that they store for clients. Most people do not take ownership of the certificates them self. Clients don’t want the hassle and expense of having the certificates overnighted and then having to worry about storing them either at home or their business. Also what if you turn around and sell it with a few days…..keeping up with that would be a hassle, therefore technically they are held at the DTCC in their name for safety and convenience.
• $500 trillion which you conveniently left out the word NOTIONAL in your text which implies all the difference in the world in your comments…..but it was in the text that you plagiarized, means virtually nothing in the context that you use it. I will leave it up to you to education yourself on “Notional”.
Just for the record I asked “if anyone actually reads the reports” not the articles and the footnotes to the reports.
But from looking at your two links I am wondering if you even know what footnotes are. The definition of footnotes
Footnotes expand on the quantitative financial statements by providing qualitative information that allows for a greater understanding of a company's true financial performance over a specified time period.

In this article there are not any footnotes at all…..just quotes.

http://www.silverdoctors.com/dtcc-says-trillions-in-stock-ce...

In this article what someone else labeled as a footnote is really a description of that the DTCC does.

http://www.dtcc.com/news/press/releases/2012/statement_vault...

Here is what your supposed footnote says.

Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes.

This is not a footnote by either definition of a footnote……so I would say you don’t read the footnotes or the “reports” that you quote……..you read an article and believe the author of that article knows what he is talking about……so you have this information without any knowledge and neither the ability to understand or the wisdom to know the difference.

Our paths will continue to cross.

Too much trust? Anti-trust? Is such monopoly outlawed?

Why does one company handle most of the financial credit clearing among banks? $1.7 quadrillion in one year? $1.88 in another?

Why did our free press report $16 trillion? And not the $1.1 trillion from the chart & footnotes? Why are those numbers in footnotes? Too much of a good thing?

I proved nothing. I kindly acknowledged your reply. We traded awareness of astonishing footnotes. I am pleased to see you too are interested.

Do you play billiards?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

No I am a redneck……I shoot pool.

As far as the one institution handling the majority of the clearing business……..it’s a clearing business…..it's owned and operating by the member banks…..who cares there nothing sinister about clearing……

you do know that there’s not a banking conspiracy……… right?

As far as the press goes…….come on man……those people only know what other people tell them. They don’t really know anything, they are supposed to have checked this stuff out, but their source on this was Sen. Bernie Sanders from Vermont………that guy is a nut!

When you google GAO 16 trillion……all the stories source Sanders and the 16 trillion figure.

These are the footnotes I refered to.

Note: The total dollar amounts borrowed represent the sum of all loans and have not been adjusted to
reflect differences in terms to maturity for the loans. Total borrowing is aggregated at the parent
company level and generally includes borrowing by branches, agencies, subsidiaries, and sponsored
ABCP conduits that we could identify. Total borrowing for each parent company consolidates
amounts borrowed by acquired institutions following the completion of acquisitions. PDCF totals
include credit extensions to affiliates of some primary dealers and TSLF totals include loans under the
TSLF Options Program (TOP).
To account for differences in the terms for loans that were outstanding,we multiplied each loan amount by the number of days the loan was outstanding and divided this amount by the number of days in a year(365). Table 9 shows the top 20 borrowing institutions in terms of term adjusted total transaction amount for emergency programs and other assistance provided directly to institutions facing liquidity strains.

This tells me that the loans were re-purchase agreement backed by some collateral provided by the banks and there were many many re-purchase agreements of varying lengths and amounts with the total loan amount only being approx.. 6% of the sensationalize number……I believe that Mr. Sanders has a motive to misinform people…….don’t you think?

My notion of running a tab & settling score? Twain it!

In your prior replies, you seemed confident that I was misunderstanding. A safe bet. No takers.

You seem to have quickly adjusted your style gauged to whom you are addressing. It worked. Overriding sentiment is amusement. Adventure. You are now writing in a style that agrees with me. Much obliged.

As for the good of "credit clearing" & what all DTCC has done... Forensic study is not for me.

    "It is better to deserve honors and not have them... than to have them and not deserve them." - Mark Twain

---- PREFATORY NOTE ~ Mark Twain Biographical Reference ----


MARK TWAIN ~ A BIOGRAPHY
THE PERSONAL AND LITERARY LIFE OF
SAMUEL LANGHORNE CLEMENS
.
BY ALBERT BIGELOW PAINE

Certain happenings as recorded in this work will be found to differ
materially from the same incidents and episodes as set down in the
writings of Mr. Clemens himself. Mark Twain's spirit was built of the very fabric of truth, so far as moral intent was concerned, but in his earlier autobiographical writings--and most of his earlier writings were autobiographical--he made no real pretense to accuracy of time, place, or circumstance--seeking, as he said, "only to tell a good story"--while in later years an ever-vivid imagination and a capricious memory made history difficult, even when, as in his so-called "Autobiography," his effort was in the direction of fact.

"When I was younger I could remember anything, whether it happened or
not," he once said, quaintly, "but I am getting old, and soon I shall
remember only the latter."
http://archive.org/stream/marktwainabiogra02982gut/old/mt1bg...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Here’s the thing

I think you are insinuating that because I cut and pasted the footnotes somehow that equates to plagiarizing for my purposes and therefore using your techniques to make a point. Wrong…..I recognized the source and the purpose of posting someone else's work and only used it to convey exactly what the information represented in its original intent and text…….so please ……I am sure Mark Twain would not approve of your techniques. What’s up with the “MAN CRUSH” on Twain by the way? Are you from Hannibal? Nice place! And what’s up with asking if I play billiards? You’re not one of those snooty yuppies are ya?

You brought up a chart & two footnotes from the Fed.

I shared one from DTCC. Bye.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Is the scale wrong

Is the scale wrong or did they inject a hundred TRILLION?

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Appears that fly fishing at Battle Creek dried up.

Did those foreign banks change bait? Sometime about 2008, something changed.

The chart gives the appearance some rapscallion tied those foreign banks to a bungee cord... Are they fly fishing Royal Gorge?

Don't see any fish. Don't know why anyone should pay them to fish. Ain't any good at it.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

If that goes to bank reserves

(as I suspect), that will generate about $1 Trillion of new banking loans. The money can be used to prop-up stocks and to lend back to US government.

Do not be sacred about foreign banks. They work for US government. Check wikipedia for the FED's Prime Member banks - those who distribute T-bills to population at large.

Bump!

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