Fed Audit = Made $16 trillion secret loans

[rashi]

[h1][/h1]

[h1]The Fed Audit[/h1]

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."

Among the investigation's key findings is that 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.

To Sanders, the conclusion is simple. "No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed's board of directors or be employed by the Fed," he said.

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.





Props to Bernie Sansders for coming out with this, and of course it isn't reported. Unfortunalty for Mr. Sanders, the Federal Reserve was created by 8 banking family cartels for the 8 banking family cartels, not for working families.

 

[teamjordan79]

The creature from jekyll island 

 

[ar guy]

It's BS. Fuzzy math.

They are multiplying the amount borrowed by the number of days the debt was outstanding.

If you charge a $1 candy bar to your visa and pay it off in 30 days, then this statistical method would claim that you were loaned $30.

 

[uptownsdotnetstacky]

 

[rashi]

Originally Posted by AR Guy

It's BS. Fuzzy math.

They are multiplying the amount borrowed by the number of days the debt was outstanding.

If you charge a $1 candy bar to your visa and pay it off in 30 days, then this statistical method would claim that you were loaned $30.

I'm willing to bet that $16 trillion is a low ball estimate.

 

[maelstroom]

Lol vote Ron Paul in 2012 so he can expose the system, or at least educate the people.

 

[jay zoe2]

interesting

 

[breakin necks]

suprised? im not

 

[ninjahood]

and that was just a light weight peak into their books.....imagine if they REALLY dove into da fed... 

 

[Pathos]

Originally Posted by ninjahood

and that was just a light weight peak into their books.....imagine if they REALLY dove into da fed... 

you aint lying

 

[josebronx]

 

[heavenlee777]

I don't think it was a secret, and I don't think it's recent news.
This was one of the main topics frequently brought up in my Econ class last semester.

How is Bernanke still head of the federal reserve?
He's been *#@*@!$ up ever since he stepped into office

 

[patrick bateman]

Originally Posted by rashi

[h1][/h1]

[h1]July 21, 2011[/h1]
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. 1) "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

For example, the 2) 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.

1) Strong words right there. 




2) 

 

“Our society is run by insane people for insane objectives. I think we're being run by maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. That's what's insane about it.

 

[finnns2003]

The Matrix is growing stronger huh?

 

[oo master chief oo]

End well, this will not. I'm usually a proponent of the fed but this...

 

[ar guy]

Originally Posted by rashi

Originally Posted by AR Guy

It's BS. Fuzzy math.

They are multiplying the amount borrowed by the number of days the debt was outstanding.

If you charge a $1 candy bar to your visa and pay it off in 30 days, then this statistical method would claim that you were loaned $30.

I'm willing to bet that $16 trillion is a low ball estimate.

Still doesn't change the fact they manipulated numbers to fit their agenda. Big shocker their.

 

[xbiker47]

Originally Posted by breakin necks

suprised? im not

 

[kanyewestjayz4life]

Fed was created to be grimey, or total control. Were are all fed puppets, we follow money and they control it.

 

[oxo yzarc oxo]

bump this %%#@, cuz NT needs a lil bit of real. this aint your %@#%$ whining about her nails, this is some real %%#@.

 

[harm]

*continues to live life*

Middle class / upper class won't be ready when the %%%% hit the fan ..

 

[rashi]

Originally Posted by AR Guy

Originally Posted by rashi

Originally Posted by AR Guy

It's BS. Fuzzy math.

They are multiplying the amount borrowed by the number of days the debt was outstanding.

If you charge a $1 candy bar to your visa and pay it off in 30 days, then this statistical method would claim that you were loaned $30.

I'm willing to bet that $16 trillion is a low ball estimate.

Still doesn't change the fact they manipulated numbers to fit their agenda. Big shocker their.

Elaborate for me a little. Sanders is a proponent of the Fed.

 

[shoedinidc]

My question is where is all this heading.

 

[veryanalytical85]

So why are we supposed to be surprised again?

 

[maelstroom]

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011):

 

[cj863]

and none of this has been published. google fed audit and no major media outlet has touched this news. Our country is in a sad sad state smh