The US Federal Reserve is getting its own loan from the British banking giant HSBC.
HSBC’s loan is worth a cool $2bn (£1.2bn), according to a Reuters analysis of data.
It is one of several US banks that have received loans from the Swiss bank this year, along with Goldman Sachs, JP Morgan Chase, Citigroup, Bank of America and Wells Fargo.HSBC has been trying to diversify its assets away from the US and abroad.
Its US operations have been struggling with a number of crises and in May it had to buy back its remaining shares of US bonds in order to keep afloat.
The new loan is a first step towards the bank’s long-term plans to refinance its US debt, which it says it can no longer service due to the global financial crisis.HSB’s loans are subject to the terms of a US Treasury loan guarantee program that the US government has promised to repay.
The US Federal government will not pay the bank for the $2.5bn loan until 2018.
It is also expected to pay back $1.3bn over the next five years.
However, the bank said it will not give up on the US.HSBB has long been criticised for its lending practices in the US, which has seen it default on large US mortgages, and in other countries where it has been accused of underwriting sub-prime mortgages.
Its recent failures have drawn criticism from consumer groups and politicians, and led to a backlash from the banking industry.