Non-US banks gain from Fed crisis fund
By Robin Harding in Washington, Bernard Simon in Toronto and Christian Oliver in Seoul
Published: December 27 2010 22:04 | Last updated: December 27 2010 22:04
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The Taf was set up in December 2007 to provide one-month loans to creditworthy banks as markets dried up for lending longer than overnight. In August 2008, it began offering three-month loans as well.
Rabobank of the Netherlands and Toronto-Dominion of Canada, two of the only banks in the world with triple A credit ratings, used more than $20bn in cumulative Taf loans.
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One of the problems that have to be addressed is: “why is the US taxpayer funding foreign banks?”
Personally, I don’t think the taxpayer should be funding ANY bank. But certainly not foreign ones.
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