Taxpayer Dollars and the 2008 Bailout That Quietly Protected Jeffrey Epstein (Part 1) (1/30/26)

Liquid Funding Ltd. didn’t survive the 2008 financial collapse by skill or luck—it survived because the system bent itself into a pretzel to protect elite balance sheets with public money. Chaired by Jeffrey Epstein, Liquid Funding sat on billions in mortgage-linked liabilities just as the global economy imploded. When the government rushed in to stabilize failing institutions, those interventions didn’t just rescue household-name banks—they quietly backstopped the opaque offshore machinery that fed off them. As emergency facilities and taxpayer-backed rescues absorbed toxic assets and restored liquidity, Liquid Funding’s obligations were made whole. The end result was grotesque: a vehicle overseen by a known predator emerging intact from a crisis that annihilated ordinary people.

What makes it sickening is the silence around it. While families lost homes and retirement savings evaporated, bailout architecture designed to “save the system” effectively covered the tab for Epstein’s offshore empire—through the rescue of counterparties like Bear Stearns, its fire-sale to JPMorgan Chase, and the emergency actions of the Federal Reserve. No vote asked taxpayers if they were willing to underwrite the continued solvency of a man already accused of unspeakable crimes. No hearing explained why his structure deserved protection while the public absorbed the losses. It was a quiet, revolting transfer of risk upward—proof that when the system panics, it shields the worst actors first and sends the bill to everyone else.



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Epstein's Really Big Short: How US Taxpayers (And Big Bankers) Bailed Him Out - National Memo