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Recently released records show which banks received bailout money from the US government. These include many well known banks like Bank of America, Citigroup, and Goldman Sachs. One surprising bank that received tax payer funds was The Central Bank of Libya.
A foreign subsidiary called the Arab Banking Corp., transferred 35 billion in short term loans from the US Federal Reserve to The Central Bank of Libya.
The Libyan government owns over half of the bank. Therefore the main beneficiary of the Fed's help was the Libyan government.
This is not a solitary event. A large percentage of the bailout funds were transferred to foreign banks. In one week in October 2008 70% of bailout funds left the United States to prop up foreign investors.
Many are critical that a bail out package presented to save the US economy was spent abroad.
"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,” says Senator Sanders of Vermont.
Read the full article.
