Our Hero

The All American Store has many individuals who we consider hero's for one reason or another.  Within the financial community Shelia Bair is one such person.  Shelia used to be the Chairperson of the FDIC - the financial institution that guarantees the money in your savings and checking account - within certain limits. 

Since leaving the FDIC she has written a number of articles that provide the average American with insight as to how the financial markets in America operate.  This article is about the ongoing investigation into the manipulation of the LIBOR rate.  This rate is used by all financial institutions in arriving at the interest rate they charge you for credit cards, auto loans, home mortgages and any other borrowed money.

The important point of her article is that manipulations within the financial industry was know by many - so called government watch dogs - and yet nothing was done to stop it.   If you as a private citizen attempted to do the same you would be arrested. 

It is unfortunaley the world we live in.

http://finance.fortune.cnn.com/2012/08/17/libor-scandal-fed/

Your Fed at work.

This is a article describing what financial institutions our Federal Reserve lent money to during the severe financial crisis of 2008 and beyond.  What makes this story so interesting is the number of foreign banks who sought and received taxpayer money to stabilize their balance sheet. 

International finance is a extremely complicated area to work within.  While we admire those who can flourish in this work environment - it is unfortunate that during this time period - with millions of American homeowners and small businesses in severe financial stress the Fed did not do more to help them. 

It just goes to show that when the world needs help it is Uncle Sam they turn to. 

http://blogs.wsj.com/economics/2012/08/20/paper-foreign-banks-were-biggest-taf-borrowers/?mod=WSJ_latestheadlines