Fed Audit: How about 16 trillion?

R

Rune

Mjölner
July 21, 2011
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."


http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
 
What power are they given to bail out foreign banks? Devaluing our currency to save the Euro? WTF???
 
Note: Bernie Sanders actually is a Socialist....


"...the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report.


"No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse.


In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.


For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed.


Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.


In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds.


One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.



The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.



The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo.


The same firms also received trillions of dollars in Fed loans at near-zero interest rates.


Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts.


Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.


A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear.


"The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."


To read the GAO report, click here.





http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
 
bravo said:
http://en.wikipedia.org/wiki/Cloward–Piven_strategy

Obama is following the plan of Cloward & Piven, two professors at Columbia University. They outlined a plan to socialize America by overwhelming the system with government spending and entitlement demands.

Bankrupt the country........THAT IS THE PLAN
Click to expand...

1. linky no worky
2. WTF are you talking about you crazy old man?
3. What possible relevence could this have in a thread about the Fed?
 
Time to end the Fed.

Congress should issue fiat currency and pay off the Fed and then dismantle it.
 
\(\()/)/ said:
Poor Blabo.


Bush already bankrupted America.
Click to expand...

Better spend more then... That's the answer to bankruptcy! We should do it carefully so that it doesn't actually help the private industry create jobs... spend more in the government jobs, make sure there are no "shovel ready" jobs and then make jokes about it...

Then try to continue to blame earthquakes, Bush, China, "The Market", the car accident in Poughkeepsie, and everybody but your policy and its makers. That will fix everything!

I think what you should do is continue doing what Bush did, but with more spending. Because nothing fixes stupid spending sprees like even stupider ones!
 
\(\()/)/ said:
Note: Bernie Sanders actually is a Socialist....


"...the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report.


"No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse.


In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.


For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed.


Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.


In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds.


One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.



The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.



The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo.


The same firms also received trillions of dollars in Fed loans at near-zero interest rates.


Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts.


Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.


A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear.


"The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."


To read the GAO report, click here.





http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
Click to expand...

who the hell is in-charge...certainly not the voters

bummer
 
You must log in or register to reply here.
Back
Top