mr. baxter and i want to fall upon mr. jones question about how some of these decisions are made and how sometimes the big guys seem to benefit they lose their homes and their jobs and quite frankly it's very difficult and it seems like people are too little to save to forget about them, too big to let them fail i'd like to direct you about the foreign loans and it seems the figures i look at that nearly one-third all the loans during this period of time went to foreign banks, and at one time at the peak of this 88% of the discount window loans went to foreign banks but than at the new york fed essentially 100% of the loans were going to foreign banks, and the answer i get is foreign banks that have subsidiaries and they qualify under the rules, wouldn't say the law but under rules that they tend to go to the discount window but it seems to go way out of proportion when you think of that tremendous amount of loan that went to the foreign banks, and this is not easy for the average american citizen to understand. could you

mr. baxter and i want to follow on mr. jones' question about how some of this decisions are made and sometimes the big guys seem to benefit and the little people lose their mortgages and lose their homes and lose their jobs and quite frankly it's very difficult times in this country because it seems like people are too little hard to save more to big to forget about them who, too big to let them had feel when, but i want to direct a question about the foreign loans and how it seems to me from the figures i look at nearly one-third of all the ones in this period time went to the foreign banks and at one time that he to of this, the personal of the discount window loans went to foreign banks and then, but at the new york fed, the tremendous amount that went to these banks and this isn't easy for the average american citizen to understand. can you enlighten us on why it seems to be disproportionate? i'm sure they don't represent that portion of the financial problems that exist. one-third of the problems didn't deal with fore

mr. baxter and i want to follow up on mr. jones' question about how some of these decisions are made and how sometimes the guys seem to benefit and little people lose their mortgages and lose their homes and they lose their jobs, and quite frankly it's very difficult times in this country because it seems like people were too little to save, people were too big, you know, to forget about them. too big to let them fail. but i want to direct the question about the foreign loans. and it seems to me, nearly one-third of all the loans during this period of time went to foreign banks. at one time at the peak of this, 80% of the overall discount window loans went to foreign banks. and then, but at the new york fed, i think practically essentially 100% of the loans were going to foreign banks. and the answer i get is that, you know, they are foreign banks but they have subsidiaries and they qualify under the rules, i wouldn't say the law, but under the rules that they can, you know, go to the discount window. but it just seems to me

mr. baxter. this may run longer than the customary five minutes and i yield now to mr. alvarez. >> chairman powell, making member clay, members of the subcommittee on the thomas baxter, we appreciate the opportunity to discuss the ways the federal reserve informs to congress and the american people without its policies and actions. central bank lending facilitates implementation of planetary policy and allows the central bank to address short-term liquidity pressures in the banking system. this role as lender of last resort is a critical one longfield around the world, especially during times of economic crisis and discount window lending can indicate strains in financial markets that could otherwise escalate in the two sharp declines in output and employment. and the united states, all discount window loans are fully secured in the federal reserve has not suffered a loss to date on its discount window lending. the federal reserve regularly releases significant detailed information about its operations in order to promote understanding of how the federal reserve fosters