Skip to content

Bailouts Went To Foreign Banks: Congressional Report Confirms What We Already Knew

Is the offshore banking takeover still a conspiracy theory?

Steve Watson
Thursday, Aug 12th, 2010

Bailouts Went To Foreign Banks: Congressional Report Confirms What We Already Knew 120810bailoutA Congressional Oversight Panel issued today highlights the fact that large portions of the Treasury’s $700 billion bailout fund have gone straight into the coffers of foreign banks, a fact that we knew months ago, but is only now being officially recognised.

The AP reports:

“Billions of dollars in U.S. rescue funds wound up in big banks in France, Germany and other nations. That was probably inevitable because of the structure of the Treasury Department’s program, the Congressional Oversight Panel says in a new report issued Thursday.”

The report notes that French bank Societe Generale received $11.9 billion, BNP Paribas got $4.9 billion, and Germany’s Deutsche Bank received $11.8 billion. This was a result of the fact that the majority of the $182 billion in bailout funds for AIG was spent on meeting the bank’s obligations to its Wall Street trading partners on credit default swaps.

43 out of 87 of those banks and financial institutions were foreign, according to the report. In addition to French and German banks, money was received by banks in Canada, Britain and Switzerland.

Taxpayers will never get this money back, a fact alluded to in the Congressional report, with the Congressional Budget Office estimating that taxpayers will lose $36 billion – an official figure that is blatantly way off the real cost to taxpayers when you take into account the full exposure of the federal government’s bailout programs since 2007, which stretches beyond $24 trillion.

“The point we make forcefully in this report is that there were no data about where this money was going, no information about where this money was going,” said panel chair Elizabeth Warren, a Harvard law professor. “Without that information, no one could make a deliberate policy choice” about whether to ask foreign governments to contribute to the financial rescues.

Relatively little is known still about the destination of trillions in bailout funds, following consistent and determined efforts on behalf of the Treasury and the Federal Reserve to keep the information secret.

“The panel strongly urges Treasury to start now to report more data about how TARP and other rescue funds flowed internationally and to document the impact that the U.S. rescue had overseas,” the report says.

“The American people have a right to know where the money went and they have a right to that information quickly,” Warren added during a telephone media press conference.

The report concludes that the losses sustained during the financial crisis has revealed the need for an international plan “to handle the collapse of major, globally significant financial institutions.”

The information in the Congressional report has been widely available for over a year. It has become common knowledge that over $40 billion in bailout money given to AIG went to foreign banks. Indeed, even AIG’s former chief said that the government used AIG “to funnel money to other Institutions, including foreign banks”.

Related reading: Americans Have Been Bailing Out Foreign Banks for Years … And We’re Getting Ready To Do It Again

Watch Alex Jones’ recent SOS call regarding the aggressive foreign banking cartel takeover of America and the wider world:

Related Posts with Thumbnails

Posted in Finance & Economics, Television Video & Film.

Tagged with AIG, America, Bank, Elizabeth Warren, Federal, German, Treasury.

Support #altnews & keep Dark Politricks alive

Any support to keep this site running would be much appreciated! If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks is all it takes to help keep the servers running and #altnews alive!

Please remember I have written hundreds of articles for this site and I host numerous amounts of material that has been taken offline by their original hosters which would be unavailable for viewing if it wasn't for this site. Therefore I would kindly ask you to help support me so that the site can continue doing what I think is an important job as well as reporting on stories the mainstream media would rather you didn't know about. I personally think it is important to host material such as removed reports that show that even FOX News once repoted on Israeli spy rings following the 9.11 hijackers before September 11th Or publishing the original Liberal Democrats Freedom Bill which was removed from their site once they enacted some watered down rubbish instead once they got into power.

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation, especially if you have a few quid sitting in your PayPal account doing nothing useful!

0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.