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FBN's Liz MacDonald breaks down projects funded by the Treasury Department’s Federal Financing Bank.
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Let's have a rough couple of months -- out about it from speaking of so the -- rough times the federal financing bank has already.
-- more than a half a billion dollars to American solar panel company so -- drug.
Well did you know that the federal financing bank is supervised by the Treasury Department and it's probably funding even more companies in the same financial situation.
-- -- No interest thing Liz MacDonald joining us for this exclusive report from our newsroom Liz walk is in this one is this bank -- I have.
This bank is basically -- expect in 1973.
And the White House is dusted off its banks and it's now being used to finance not just solar companies actually.
But also the hope now government bailout of mortgage borrowers who are delinquent.
Also it's helping to finance get this city insolvent pop US post office and it's being used to back expensive.
Green car projects that Ford Nissan and -- Tesla Motors so.
We're seeing essentially -- bet they did this financing back the federal financing bank this is an off balance sheet bank that is.
Overseen by the US Treasury Department the treasury secretary's essentially chairman of the bank.
Treasury officials are executives of the board of the bank.
And it's being used -- -- -- fund all sorts of pet projects like never before and had a zero balance for Department of Energy backed loans.
As through 2008 but then -- I'm in administration put forwards this stimulus plan.
Which not only gave you know so -- that more than half a billion dollar -- I guaranteed loan.
But this federal financing bank is financing other solar projects take a look we have a full screen to show you -- and the list here out of the projects.
Abound solar is getting -- I have million dollars abound solar is due.
400 million dollars from the US government via this bank actually that's more than 60% of its balance sheet.
You're gonna see other teetering projects as well the solar partners.
-- -- are gonna see here are backed by Google BP and Chevron they're building a big solar energy plant.
Outside the Mojave Desert in the things and burning CEO.
And California so that bright energy is the solar partners project.
For the solar plant and Mojave Desert actually -- -- about a 160 million dollars for the last three years.
Still it's getting a lot of -- money through this federal financing bank the Treasury Department inspector general is probing the federal financing bank were on loan to -- that you -- when you.
That loan -- as I say that they of the loan rate was one point 025.
I mean those lows you can go basically.
Even though Fitch had a rating on map to console indirect B plus and speculative -- have about.
Work yeah that's me you're right actually visit dirt cheap.
Government loans that are coming from this off balance sheet bank that is run by the treasury department's take a look at the other interest -- that C and I loans that the financing bank is given out in Tennessee dirt cheap loans of 2% given to Ford.
I get is seeing as you pointed out less than 1% given it's a lender and abound as getting a dirt cheap loan at less than 3% say it right actually and by the way.
The federal financing bank this off balloting bank that the treasury runs.
Is that -- basically foregoing interest Ronde loans it -- -- into the Agriculture Department.
The veteran administration.
And the and other agencies as well in other words taxpayers are footing the bill.
And by the way get this it does not put up any long cushions are capital reserves -- -- loans.
Because it's saying it doesn't expect any future losses on its loans despite that you know that in their belly up from the -- so you know it's visited taxpayers of a cushion.
For their loans given by the soft balance -- bank of the Treasury Department back to.
But as well intentioned back in 1973 he's got out evolved into what is essentially the bank of Geithner.
The equivalent of a slush fund in which taxpayer money -- is handed out.
With almost no oversight to risky businesses and in the end what you get.
Are the sole interest of the world.
Yeah me understand me is that you know the the claim is -- the White House put a lot of pressure to get this -- through quickly to slender as well yeah that's.
Right and so you know you're writing grant makes a good point here this bank was launched in 1973.
Think is that that time Fannie Mae Freddie Mac.
And selling they were pumping all sorts of securities into the market and laundry hold the government the congress said wait a second.
Those bonds are gonna compete with their own treasury securities we need to help smooth over the financing costs here so they launched this bank during a big recession in nineteen -- 73 during the final shot so was meant to smooth out those kinds of fiscal priorities but is now being used for all sorts of pet projects.
From the White House right now back to actually.
On quick question then they hidden things that are going on in Ford said that they can get any bail out for many of the tolerate any -- QE1 or two and here they go they're they're getting loans to the back door.
Of an institution that's off balance sheet that none of us even knew about.
-- probably was snuck into some of these little loan modified notes CIA -- Along well yeah there's all of it is to promote the president's political agenda of Green jobs which even prominent Democrats.
In the house of record well -- Maxine Waters and Emanuel Cleaver had said.
This is an abysmal failure the president's signature initiative that just the latest example -- at a time all right Liz -- thank you some of our very.
