In a recent eye-opening piece by Zerohedge.com, “Thanks to QE Bernanke has injected foreign banks with $1 trillion in cash for the first time ever,” the highly trafficked financial blog notes that as quantitative easing has increased, so have foreign bank cash assets.
In fact, since 2009, as the Fed has loaded up on U.S. Treasuries and mortgage-backed securities, foreign bank cash assets have moved up pretty much in tandem, now totaling more than $1 trillion.
In short, the Fed is printing money to prop up foreign banks. Bottom line: At least $714 billion of the Fed’s $1.329 trillion balance sheet expansion — nearly 54 percent — since QE began in January 2009 has gone to foreign banks.
Moreover, emergency programs implemented beginning in September 2008 resulted in an additional $242 billion ballooning of foreign banks’ cash assets.
All told, foreign bank cash assets have risen from $59 billion then to $1.033 trillion today. It’s the Fed’s foreign bailout.
But is Congress paying...
The Florida Legislature has approved reforms to the state-run Citizens Property Insurance Corp., including provisions that will end insurance subsidies for new construction in environmentally sensitive coastal regions.
The state Senate last week concurred by a 32-1 margin to an amended version of S.B. 1770, as passed earlier in the week by the state House of Representatives. With the Senate’s concurrence, the measure now moves to Gov. Rick Scott’s (R) desk.
Among the bill’s provisions is one...
Federal investigators say City of Harrisburg, Pennsylvania officials misled the public and investors about how bad the municipality’s finances really were.
The Securities and Exchange Commission on Monday charged the City of Harrisburg with securities fraud in connection with misleading financial statements made to the public. The SEC said the misinformation meant investors risked dealing in securities based on incomplete or outdated knowledge.
The city has reached a settlement with the...