And by poorly managed banks we mean pretty much every big bank on the planet. For instance we now know that nearly half a trillion from the United States Federal Reserve was GIVEN to foreign banks. Given to them. Not even loaned at a penalty rate. Just given. How many people lost their homes now? But half a trillion was just handed to banks which aren’t even nominally “American.”
They included $127.5 billion given to MBS Credit Suisse (Switzerland), $117.8 billion to Deutsche Bank (Germany), $63.1 billion to Barclays Capital (UK), $55.5 billion to UBS Securities (Switzerland), $27 billion to BNP Paribas (France), $24.4 billion to the Royal Bank of Scotland (UK), and $22.2 billion to Nomura Securities (Japan). Another $4.2 billion was given to the Royal Bank of Canada, and $917 million to Mizuho Securities (Japan).
Not that I’m advocating handing cash out to anyone or thing. Bailing out homeowners directly would have been a huge mistake. Better to let the market fall back to reality so people could buy houses at reasonable prices.
But that the Fed would accommodate these banks to the extent it did sure offers some perspective on priorities. Really, it’s a crime. A massive almost unfathomable crime and the banks and the Fed both think they’ve gotten away with it.
Perhaps they have.