wait… the Federal Reserve has been loaning WHO money?

Many people will probably be most outraged by the tales of bankers’ wives getting government backing to cover their investments in this investigation of newly released documents from the bailout in the next Rolling Stone. But as a guy who’s been suspicious of our intervention in Libya’s civil war, I found this particularly galling:

[A]t a time when America is borrowing from the Middle East at interest rates of three percent, why did the Fed extend $35 billion in loans to the Arab Banking Corporation of Bahrain at interest rates as low as one quarter of one point?

Even more disturbing, the major stakeholder in the Bahrain bank is none other than the Central Bank of Libya, which owns 59 percent of the operation. In fact, the Bahrain bank just received a special exemption from the U.S. Treasury to prevent its assets from being frozen in accord with economic sanctions. That’s right: Muammar Qaddafi received more than 70 loans from the Federal Reserve….

I kind of like this, actually — we buy him the tanks, then we blow them up. Then we buy him more tanks?

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