Matt Taibbi asks a good question:
Why, I wondered, would the Federal Reserve be giving Muammar Qaddafi $26 billion in near-zero interest loans?
Because it isn't. US Treasury: "General License No. 1A authorizes all transactions involving banks that are owned or controlled by the Government of Libya and organized under the laws of a country other than Libya, provided the transactions do not otherwise involve the Government of Libya or any person whose property and interests in property are blocked." http://tinyurl.com/3fermhxSee alsohttp://tinyurl.com/3f8pwqlThus, not lending money to Qadaffi. Lending money to a bank incorporated in Bahrain of which the Libyan central bank is the majority share holder.
Right, that's in the article. But assuming that Gaddafi is able to repatriate funds from Bahrain to Tripoli isn't that just semantics?
maybe, but that would seem to depend on Bahrain's willingness to enforce the UN freeze. And the US willingness to punish them if they don't.
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