Much of the tens of trillions in bailout money and “easy” money from quantitative easing went to foreign banks (and see this, this and this).
Indeed, Ron Paul noted recently that one-third of all fed bailout loans – and essentially 100% of loans from the New York Fed – went to foreign banks.
The New York Fed is the most important Fed bank. As Bloomberg pointed out in 2009:
The New York Fed is one of 12 regional Federal Reserve banks and the one charged with monitoring capital markets. It is also managing $1.7trillion [now up to at least $1.9 trillion] of emergency lending programs [and accepting collateral from the banks in return].
However, the country’s most powerful “agency” – the Federal Reserve – is actually no more federal than Federal Express. The Fed itself admitted (via Bloomberg):