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March 31, 2011

Senator: Why did the Fed bail out Gadhafi?

Under pressure and litigation from Bloomberg News, the Fed has released the names of thousands of banking companies that lined up at its discount window during the financial crisis to take out emergency loans.

Vermont Sen. Bernie Sanders has some questions: Why did the Fed's customers include the Arab Banking Corp., which he says is 59 percent owned by the Central Bank of Libya? And why didn't economic sanctions keep a Libya-owned company from doing business with the U.S. government?

Perhaps the answer to No. 2 is that the Iran-Libya Sanctions Act was modified to apply to only Iran a few years ago after Gadhafi pretended to clean up his act and the West pretended to forget about Gadhafi's murder (all the evidence points this way) of 243 people on Pan Am Flight 103.

Posted by Jay Hancock at 5:38 PM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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