Posted on 12/16/2011 2:35:45 PM PST by decimon
WASHINGTON (Reuters) - Europe's financial crisis poses a threat to U.S. banks and the economy but it is up to the continent's leaders -- not the Federal Reserve -- to find a resolution, a top official at the central bank said on Friday.
New York Federal Reserve Bank President William Dudley defended the Fed's decision to lower the cost of dollar funds for overseas banks stressed by Europe's debt crisis as an important step to safeguard the U.S. economy, but he told lawmakers no further intervention was planned.
"I don't anticipate, even if the crisis in Europe were to worsen, further steps on the part of the Federal Reserve at this time," Dudley, a former Goldman Sachs partner, told a U.S. House of Representatives subcommittee.
Both Dudley and senior U.S. Treasury official Mark Sobel told the panel the euro zone's festering debt crisis posed a big risk to the U.S. economy, and that the United States had an interest in seeing it put to rest.
(Excerpt) Read more at news.yahoo.com ...
Nobody trusts anything they say. The Fed needs a complete audit.
Subsidiing Europe’s national defense since the end of World War II is all the help they should expect from us.
Dudley held out the idea of supporting US banks.
Did Dudley do right?
Yeah, sure. Until the next emergency strikes.
Jeopardy:
“What do we call Currency Swaps” for a few trillion please.
Money’s fungible. We could be bailing out anybody. And what about all that money the Fed loaned Dexia, for example? The Fed’s been bailing out Europe for a while now.
The fed needs to be put on a big barge and shoved off the pier and let them float out to sea.
Here’s a scary thought. IIUC, there are two kinds if exposure: direct and indirect. Banks are required to report direct exposure only. But is anyone else wondering if American too-big-to-fail financial institutions could be lying through their teeth about which kind of exposure they’ve got and how much.....
So, what was the purpose of the $16 TRILLION that Rep. Bernie Sanders FOIA request turned up?
The feds will give it to the IMF which will then throw the money down the European rat hole.
“a former Goldman Sachs partner”
Yeah, like I’m gonna believe Anything from a guy like this.
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